TiVo Prevails in DVR Patent Dispute

By Ed Oswald | Published April 14, 2006, 11:39 AM

In a decision that could have implications for the entire digital video recorder industry, TiVo on Thursday won a patent infringement case against EchoStar Communications. A jury awarded the DVR manufacturer $73 million and found that EchoStar willfully infringed on TiVo's patent.

The patent covers how TiVo is able to play one television show while recording another, in addition to various DVR functions including the pausing of live television. EchoStar, which is accused of using TiVo's technology in its recorders for the DISH Network satellite TV service, vowed to appeal the decision.

"We believe the patent - as interpreted in this case - is overly broad given the technology in existence when TiVo filed its patent," the company said. EchoStar added that the TiVo's patent was under review, saying there was "a substantial question" as to its validity.

TiVo plans to ask for a permanent injunction that would bar EchoStar from shipping its DVRs. Such a move would cripple the satellite provider, while sending a message to TiVo's competitors that it will vigorously defend its patent rights.

"TiVo has a long list of licensees in the consumer electronics, cable and satellite markets, and we will continue to license our technology under appropriate circumstances and arrangements," the company said in a statement.

An appeals process is likely to drag on for years. But if TiVo ultimately prevails, it could fundamentally change the DVR landscape. The company would have increased leverage when negotiating with rivals.

Additionally, it could potentially mean new customers for TiVo, as cable and satellite providers may opt to license TiVo's technology directly rather than attempting to develop their own.

While EchoStar may have lost this initial fight, the company has a countersuit in Arkansas that accuses TiVo of infringing on four of its own patents. That case will go to trial in February 2007.

Comments

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Trevor Heins interviews 2 men who were just part of a focus group on the Wonder Showzen bit "Horse Apples"

Trevor Heins: Do is make you feel warm in your heart to help the consumer?
Man 1: Yes its nice to be able to help out.
Trevor Heins: Do you think you're an American Hero?
Man 1: Yes, yes.

Trevor Heins: Do you love TV?
Man 2: Yes I watch it every day.
Trevor Heins: Would you say that TV is kind of like your bible?
Man 2: Kind of.
Trevor Heins: Do you ever put your hand on the TV and pray?
Man 2: Yes. When you touch the TV its different.

-Source: Wonder Showzen Season 2 Episode 3.

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how are you supposed to have competition when you patent every conceivable thing about your product, from the one word common english name (windows) to the color(de-walt).

new company's seem to be some variation of a pyramid scam. you come up with a halfa$$ed product, market the $hit out of it, come up with grandoise projected sales figures so your stocks go up, and make everyone else who comes into that market pay you cuz you thought of it first.

kinda seems to stop anyone else from getting to the top in that market (or even competing in some cases) without being sued.

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How did they patent dual tuners?

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I think TIVO at this point is going the way of greedy corporation, HOWEVER, by all right they DID create the set top record-cable-to-hard drive....so, yeah by all that is good, they should be asked to license technology. Though technically this stifles competition.....from 1 point of view, they put the idea to use before any one else and should be compensated...on the other hand, who's being paid royalties for the idea of sending pictures and sound through cables to devices that display the to families? Hope you get my drift.

It's a thin line nowadays....I think companies/people should be paid for their work, yes - but if it's technologically mammoth enough.. I think companies should be allowed to compete with it.

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I think I am going to copyright watching TV and then sue anybody that tries to watch it.

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Seems kind of pathetic when a "Certain" company has to recur to lawsuits as a last resource for prevailing against competitors....

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Well if you invest millions of dollars in developing an innovative technology and someone just hijacks it for their own product, they should be forced to pay you royalties. That's exactly what the patent system was designed for. Unfortunately, it gets abused so much that it's often hard to tell what is legitimate and what is just absurd (like patenting one-click shopping).

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Agreed. This is one of the rare victories for the current system. That's attributable to this case being so "old-school". It's pretty clear what was going on.

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You're right, but is this patent innovative ?
I've been recording a program while playing another one from years with my VCR...

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lol, me too

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Yay!

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