http://www.tvpredictions.com/echostartivo100406.htm
The satcaster wins a temporary reprieve that would have forced it to shut down service.
By Phillip Swann
Washington, D.C. (October 5, 2006) -- EchoStar's HD DVR owners can breathe a sigh of relief today after a federal court ruled the satcaster can continue offering the TV recording service.
A Texas court judge last August issued an injunction against EchoStar, saying it would have to shut down all Digital Video Recording service (including high-def recorders) in 30 days. The injunction followed a Texas jury's verdict that EchoStar had violated TiVo's DVR patents. The jury also found EchoStar liable for approximately $90 million in damages.
However, an appellate court yesterday granted EchoStar's request for a stay on the injunction. Consequently, EchoStar can continue to offer DVR service while appealing the Texas ruling.
Shares of TiVo fell nearly seven percent on Tuesday after the ruling.
TiVo has alleged that EchoStar violated its "time warp" patent which allows recording one show while watching another.
But EchoStar says it believes it will win the case on appeal.
"This action by the Federal Court reinforces our belief that the Texas court made significant errors during the trial process and we look forward to complete vindication of our position," EchoStar said in a statement.
TiVo, however, had a different view.
"We are confident that the jury's decision in TiVo's favor will be upheld once the Federal Circuit has the opportunity to review the entire record in this case," TiVo said in a statement.
The final outcome of the case could have a major impact on both companies.
EchoStar has millions of DVR subscribers, some of whom could jump to rival TV services if it's forced to discontinue the service.
TiVo, on the other hand, hopes to use the EchoStar verdict as leverage to force other TV providers to license its software and/or offer its service to subscribers
The satcaster wins a temporary reprieve that would have forced it to shut down service.
By Phillip Swann
Washington, D.C. (October 5, 2006) -- EchoStar's HD DVR owners can breathe a sigh of relief today after a federal court ruled the satcaster can continue offering the TV recording service.
A Texas court judge last August issued an injunction against EchoStar, saying it would have to shut down all Digital Video Recording service (including high-def recorders) in 30 days. The injunction followed a Texas jury's verdict that EchoStar had violated TiVo's DVR patents. The jury also found EchoStar liable for approximately $90 million in damages.
However, an appellate court yesterday granted EchoStar's request for a stay on the injunction. Consequently, EchoStar can continue to offer DVR service while appealing the Texas ruling.
Shares of TiVo fell nearly seven percent on Tuesday after the ruling.
TiVo has alleged that EchoStar violated its "time warp" patent which allows recording one show while watching another.
But EchoStar says it believes it will win the case on appeal.
"This action by the Federal Court reinforces our belief that the Texas court made significant errors during the trial process and we look forward to complete vindication of our position," EchoStar said in a statement.
TiVo, however, had a different view.
"We are confident that the jury's decision in TiVo's favor will be upheld once the Federal Circuit has the opportunity to review the entire record in this case," TiVo said in a statement.
The final outcome of the case could have a major impact on both companies.
EchoStar has millions of DVR subscribers, some of whom could jump to rival TV services if it's forced to discontinue the service.
TiVo, on the other hand, hopes to use the EchoStar verdict as leverage to force other TV providers to license its software and/or offer its service to subscribers
