EchoStar and DISH to (Finally) Pay TiVo

Includes: DISH, SATS, TIVO
by: Dave Zatz

After knocking around in the judicial system for several years, TiVo’s (TIVO) patent infringement case may finally see (some) closure. As EchoStar (SATS) & DISH’s (DISH) appeal will not be tackled by the Supreme Court, they’ve announced their intentions to pay TiVo the original $104 million award (including interest) shortly. Of course, this may just be the first installment… There’s potentially more cash at play, pending claims of continued infringement and the contempt hearing outcome.

EchoStar & DISH’s response:

DISH Network Corporation (NASDAQ: DISH) and EchoStar Corporation (NASDAQ: SATS) issued the following statement regarding today’s ruling by the United States Supreme Court in EchoStar Communications Corporation vs. Tivo: “As expected, the Supreme Court denied our petition for certiorari today. The Supreme Court’s decision, however, does not impact our software design-around, which has been placed in DISH DVRs subject to the district court’s injunction, and our customers can continue using their DISH DVRs. We believe that the design-around does not infringe Tivo’s patent and that Tivo’s pending motion for contempt should be denied. We look forward to that ruling in the near future. Because of the Supreme Court’s decision, we will pay Tivo approximately $104 million (the amount the jury awarded in 2006 plus interest). The money is in an escrow account and will be released to Tivo in the next few days.

TiVo’s response:

TiVo Inc. (Nasdaq: TIVO), the creator of and leader in television products and services for digital video recorders (NYSE:DVR), offered the following statement today on the ruling by the United States Supreme Court to deny an appeal by EchoStar Communications Corporation: “We are extremely pleased that the United States Supreme Court has denied EchoStar’s petition to review the United States Court of Appeals for the Federal Circuit unanimous ruling that upheld the District Court judgment of willful patent infringement, full award of damages, and a permanent injunction against EchoStar’s infringing DVR products. We look forward to the expeditious receipt of damages awarded by the District Court covering the period through September 8, 2006 and remain confident that the District Court will enforce the injunction and award further damages from EchoStar’s continued infringement of our Time Warp patent.”

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