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GoReds
08-21-2006, 02:50 PM
Appeals court blocks order to shut down Dish DVRs


Updated 8/20/2006 6:25 PM ET
Early Friday, a federal judge ordered that Dish digital video recorders, like the one above, must be shut down within 30 days.That decision has since been blocked by a federal appeals court.

EchoStar, parent of the Dish Network satellite TV service, on Friday said a federal appeals court temporarily blocked a lower-court order that would have forced EchoStar to turn off about 4 million of its digital video recorders within 30 days.

Earlier Friday, a U.S. District Court judge in Texas granted a motion by TiVo for the DVR shutdown and ordered EchoStar to pay $89.6 million in damages.

The decision comes after a federal jury in April determined that EchoStar willfully infringed on TiVo's "time-warp" patent, which applies to the way a DVR simultaneously records one program while playing back another.

"We continue to believe the Texas decision was wrong, and should be reversed on appeal," EchoStar said in a statement. The Englewood, Colo., company also said it is working on modifications to its new DVRs so that they won't infringe on TiVo's patent.

EchoStar is the country's second-largest satellite TV provider with about 12.5 million subscribers.

TiVo, the Alviso, Calif., company that is credited with introducing DVR technology, said it was "pleased" with the injunction.

"This decision recognizes that our intellectual property is valuable and will ensure that moving forward EchoStar will be unable to use our patented technology without our authorization," the company said in a prepared statement.

Because EchoStar's infringement of TiVo's patent was seen as "willful," the judge could have tripled the amount of damages, but chose not to. TiVo is pondering whether to appeal that part of the decision, said TiVo spokesman Elliot Sloane.

EchoStar shares fell 70 cents, or 2.1%, to $32.05 in midday trading on the Nasdaq Stock Market. TiVo shares jumped 41 cents, or 6.3%, to $6.90.
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How does the highlighted paragraph make sense? If Echostar feels that they did nothing wrong, then why are they working on modifications to get around the Tivo patent?

cumberlandreds
08-21-2006, 02:54 PM
I think Echostar, in the end, will buy out TIVO. At only $6.90 a share it shouldn't be a problem for them to do that. But to answer your question it does sound like Echostar is admitting that they stole at least part of TIVO's technology in order to produce a DVR.

Hap
08-21-2006, 07:26 PM
millionaires suing millionaires.....we'll all pay for it out of our pockets, no matter what the final decision is....

LoganBuck
08-21-2006, 10:27 PM
I have a DVR how does this affect me?

cumberlandreds
08-22-2006, 09:56 AM
I have a DVR how does this affect me?

No affect right now. Just stayed tuned to these court orders. IMO, DISH will either settle with or buy out TIVO in the end. It's a lawyers game right now and they are all getting rich from this.

Unassisted
08-22-2006, 11:07 AM
I've long thought that Echostar and Charlie Ergen are kind of shady. I'm also a big believer in standalone DVRs, so I'd like to see Tivo prevail here.