EchoStar Ordered To Pay Up in TiVo Patent Case

By  |  Tuesday, June 2, 2009 at 7:04 pm

EchoStar will be forced to pay a total of $190 million to TiVo as a result of a Texas District Judge’s ruling that the company was infringing on technologies patented by TiVo. Furthermore, it was found the company had violated an earlier injunction by attempting to develop a “workaround” which it said still violated TiVo’s patent rights.

TiVo’s case against EchoStar has been going on for quite awhile now: it lost the original case in 2006. This set off a seemingly endless stream of attempts by EchoStar to appeal, of which it lost all major rulings.

In an attempt to avoid further infringement, EchoStar developed what it called a “workaround,” which it said removed what TiVo claimed to be patented technologies. The DVR maker disagreed, and the courts have now found that the workaround did still infringe on patents held by TiVo.

The patent infrigement claims will be worth $73.9 million plus $15.7 million in interest, plus another $103.1 million has been tacked on as a result of infringement that occurred during the injunction period.

In addition, the company will now be required to shut off the infringing technology from practically all of its DVR recorders. In addition, it will not be allowed to attempt another “workaround” without telling the court first.

 EchoStar is remaining ever defiant, saying it will appeal the order with a federal appeals court, however its beginning to look like sooner or later the company’s going to have to pay up.

TiVo seems to enjoy the fact that EchoStar wants to continue pushing its luck: “EchoStar may attempt to further delay this case but we are very pleased the court has made it clear that there are major ramifications for continued infringement,” it said in a statement.

It may make better business sense for EchoStar to just pay up and license the technology. A single court has yet to side with them on any major decision regarding the actual infringement, thus chances of victory in the courts seem slim to none.

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  1. mbv Says:

    It seems like the price just keeps going up on the total amount that Dish Network owes Tivo. I think they should just sign a contract with Tivo to make a Dish Tivo box.