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EchoStar loses TiVo patent case; can still sell DVRs

Fri, 08/18/2006 - 8:03am
Brian Santo, CED

A jury has decided that EchoStar's DVRs infringe on a TiVo patent. Following the verdict, the U.S. District Court in Eastern Texas assessed over $89 million in penalties against EchoStar. The District Court also ruled EchoStar must immediately halt sales and manufacturing of DVRs and shut down installed DVRs in 30 days, but EchoStar managed to get a stay in appeals court within 24 hours on those injunctions.

The suit, filed in 2004, hinged on TiVo's claim that EchoStar was infringing on its "time warp" patent, which covers simultaneous playback and recording.

After securing a stay in appeals court, EchoStar will appeal the entire District Court decision. The DBS company clung to the silver lining that the District Court concluded EchoStar did not act in bad faith and did not copy TiVo's technology.

EchoStar also said it is continuing to work on modifications to both its new DVRs and to its DVRs in the field intended to avoid what it called "future alleged infringement."

TiVo, meanwhile, issued a statement saying, "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."

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