At most this ruling gives a little negotiating power to Dish to settle the lawsuit and reach a licensing agreement.
Don't hold your breath that Charlie will settle with TiVo.
First USPTO did not invalidate the patent. They issued a preliminary ruling that Dish’s workaround doesn’t infringe on those patents.
The PTO's initial action has nothing to do with the E* workaround, the PTO does not get involved with the lawsuit and decide if the workaround is successful or not. The courts will do such work.
But if your above statement is true, you have just refuted your own comment below:
...Basically today’s ruling has little effect on anything.
Because if you are correct (which you are not) that the PTO has ruled the E* workaround doesn't infringe, it naturally refutes Judge Folsom's own ruling that the workaround still infringes, if so, how can you conclude this PTO "ruling" has "little effect"?
But this PTO initial action will have a significant impact on the current litigation because E* will used it to the fullest extent, the letter E* sent to Judge Folsom yesterday already indicated that.
TiVo is given 2 months to respond to the PTO initial action, and TiVo is required to provide full copies of their PTO responses to E*.
In this PTO initial action, the PTO interpreted the software claims in the same ways E* interpreted during the contempt proceedings. We are talking the office that granted TiVo this patent that agreed with E* on how to interpret the claims.
Of course TiVo will have the opportunity to respond and maybe even to refute the PTO's interpretations, but the problems are, for one thing the PTO interpretations are based on TiVo's own patent application and prosecution history, in other words based on what TiVo said years ago when they tried to have their patent granted by the PTO.
The other thing is, when TiVo tries to respond, if they want to take the positions in order to succeed in overturning the PTO's claim rejection decision, they will likely have to abandon some of the positions they took during the contempt proceedings when they argued on the contempt issues. Conversely, if TiVo maintains the positions they held during the contempt proceedings, they face a near certainty that their software claims will be rejected.
Two months are within the appeals court's schedule, in fact judging from the current appeal movement, the appeals court will likely not be able to render a ruling in November as they initially planned to. There were just too many new issues kept popping up, such as this new PTO action, and the Judge Folsom's upcoming decision on the sanctions, which he wanted to be incorporated into the appeal.
E* is waiting for TiVo to fire their shots at the PTO, and you can be assured E* will exploit TiVo's PTO filing in front of the appeals court to its full advantage.
IMHO, what awaits TiVo in the next two months will be the most challenging for TiVo.