Echostar/DISH Network loses 2nd patent suit against Tivo

[SirFozzie]

Judge orders Echostar to disable set-top DVR • The Register


So, in short, Echostar/DISH network has to:

A) Pay Tivo $208 Million Dollars in patent violations (plus interest)
B) Disable just about all their DVR boxes within 30 days (a small #, less then 200K, will not be affected.

The conservative thought is that if DISH network has to swap out all their DVR boxes, that they could lose a million subscribers (they have 13-14 million).. and they could face being locked completely out of the DVR market for satellite providers (one analyst said that today's events could see DirecTV look to buy Tivo to basically put a death sentence on Echostar/DISH)

[stevew]

man, this blows. I'm done with my contract and would go back to cable if I don't have a DVR.

[CU Tiger]

this is a horse shit ruling for the consumer. I am a dealer for Directv and Dish! and it is a no brainer who has better customer support. Out of 600 sat subscribers I have not sold a single DirecTv one in 3 years that didnt list NFL Network as their only reason.

[stevew]

They also added network support to my VIP722 box. I haven't hooked it up but I guess I can set the DVR from anywhere now.

[sterlingice]

I haven't been following this story. So is this a precedent that Tivo can go and use against anyone with DVR service?

SI

[SirFozzie]

Correct:

TiVo Soars, May Rise Further - Barrons.com

In a "nuclear scenario," Dish's competitor, satellite TV provider DirecTV (DTV), could buy TiVo and reserve exclusive use of the DVR technology. That would mean Dish would be the only digital TV provider unable to offer fast-forwarding of TV, a situation that Bernstein's Moffett describes as a "death sentence."

As for TiVo, its victory today is masked by the fact that the stock is up because people bet so heavily against the company. The stock has always had about 20% to 30% of its outstanding shares shorted, says David Miller with Caris & Co., and half of today's buying of the shares is probably by shorts trying to cover.

But there's real potential here to squeeze money from not just Dish but also Time Warner Cable (TWC). Cablevision (CVC) has said it will develop a networked DVR, where TV programs can be replayed from its own servers, thus eliminating the need for a DVR. Both Cablevision and Time Warner may push further into that technology in a bid to avoid a licensing fee.

Device makers Cisco Systems (CSCO), which makes set-tops with integrated DVR functions, and Motorola (MOT), face royalty claims as well. Comcast, the largest U.S. cable operator, already pays TiVo.

[MacroGuru]

I left Dish close to 6 years ago because of the poor customer service and the lack of negotiating with a bunch of the local stations when I lived in Utah. I went to cable after that.

I ran cable up until I moved to NY, I then moved to DirecTV just so I could watch the MWC games.

[jeff061]

How does Direct buying them out only effect Dish? I know Comcast already pays fees, but Direct could hike them or not renew whatever contract they are on, couldn't they?

[SirFozzie]

yes, but it would KILL dish, because DirectTV would basically wipe them out as a direct competitor

[stevew]

Dish Network will pay TiVo $500 million to settle DVR lawsuit
By Richard Lawler posted May 2nd 2011 7:01AM Breaking NewsDish Network and TiVo have come to a settlement on their long running patent dispute that will see the satellite company pay $500 million to settle all ongoing litigation. We stopped covering the various court judgements in this case last year as each side continued to file one stay and injunction after another, but this time it's finally over. According to the press release, the two companies have licensed certain patents to each other, including the infamous Time Warp patent that was at the heart of the dispute. Details are in the press release after the break, but TiVo's scored an upfront $300 million cash payment, with the remaining $200 million to be paid out between 2012 and 2017.