GB33 said:
Must be nice. i have tried ret 2x and get squat. i have been debating "the switch" for a while now. While this dish - Tivo crap has me a bit leary currently, I am still thinking about it.
I really don’t think now is the best time to switch to DISH. As a DirecTV customer you may not get a great retention offer by threatening to switch to DISH, but if you are a DISH customer coming over I'll bet you get a sweetheart deal from DirecTV. Why? Well last week the United Stated District Court in Texas ruled that EchoStar Dish Network must disable all infringing DVR features within 30 days. If this ruling stands millions of DISH customers will lose their DVR functions. The appellate court has “stayed” the order for 30 days in order to review DISH’s appeal.
TIVO is suing EchoStar (DISH) for patent infringement. TIVO inventions protected by this patent, and illegally infringed on by EchoStar, include a method for recording one program while playing back another; watching a show as it is recording; and a storage format that supports advanced capabilities -- such as pausing live television, fast-forwarding, rewinding, instant replays, and slow motion.
TIVO invented, developed (spent capital in doing so), and obtained legal patents for this product. As a result TIVO justifiably owns the rights which EchoStar took with no royalty paid to TIVO. Corporate theft at its ugliest. The trial court agreed and do not be surprised if the final appellate court upholds the lower court. This case clearly illustrates EchoStar's foolish and arrogant approach in the way it conducts business in this industry.
The court of appeals temporarily stayed the district court injunction only until it decides whether a stay should or should not be in effect for the duration of the appeals process. The court stated that the temporary stay is not based on a consideration of the merits of EchoStar’s appeal.
The district court ruled that EchoStar pay TIVO nearly $74 million in damages as awarded by jury (in addition to disabling all DVR's used by subscribers). The final penalty would increase to $90 million based on $5.4 million in interest payments and $10.3 million in supplemental damages. If the decision stands, which is a real possibility, the long term damage would be the loss of numerous current and future customers. That translates into a serious revenue drop and a rise in monthly fees to compensate. The issue now puts EchoStar in a precarious position: either negotiate with TIVO, or risk losing subscribers.
You can be certain the legal costs of this decision will be passed on to the DISH customer. If the decision is upheld DISH is doomed. In any event this action is going to have a serious impact on DISH's ability to compete for new customers until this is settled, and that translates into additional revenue loss. The pressure is on DISH to find a way to settle, and TIVO holds all the cards. DISH loses regardless if the court decides or they settle.
In the meantime stock will continue to plunge and company worth will drop (not a good thing) while costs go up and customer base stagnates or falls. Do the math and be prepared to pay for this disaster if you are a DISH customer. Increased cost to the customer will result in more defections and the competition will seize this opportunity to offer more incentives to jump from DISH (and the beat goes on).
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