TiVo is encountering increasing competition from satellite and cable companies who are developing their own DVR units. The game is changing though, because TiVo just won a lawsuit in appeals court against Echostar (Dish) for patent violations.

The dispute centers around several pieces of TiVo’s time-shifting technology which the company is seeking to license out to TV distributors. TiVo just enjoyed a major victory when a “federal appeals court affirmed that EchoStar Holding Corp. (SATS) and Dish Network Corp. (DISH) have been illegally using the [time shifting] software.”

Specifically, TiVo’s patent allows “the user to store selected television broadcast programs while the user is simultaneously watching or reviewing another program,” according to CNET.

In 2006 TiVo issued a statement indicating it would “continue to defend its technology vigorously and will not be intimidated by claims such as those EchoStar asserted against TiVo — claims EchoStar asserted in response to TiVo’s successful suit against EchoStar. As the jury found on April 13, 2006 in TiVo’s suit against EchoStar, EchoStar willfully infringed TiVo’s pioneering time warping patent. TiVo will continue to vigorously pursue its rights in that case.”

Now that the district court decision has been affirmed, that means Echostar owes TiVo $94 million and sets a precedent for other companies looking to piggyback on TiVo’s innovations. Notably though, “the court did reverse the ruling that EchoStar had violated TiVo’s hardware patents,” according to CNN. Apparently TiVo’s hardware architecture isn’t as unique as its software.

Moving forward, TiVo executive Tom Rogers asserts that “having a key patent like this affirmed would add a clear strength to our overall negotiating position in terms of distribution. Our goal is to enter into commercial relationships that value our innovative approach.”

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Entry was posted on Thursday, January 31st, 2008 at 11:11 pm under Legal.

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