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News
Dish Countersues TiVo To Avoid DVR Shutdown or Hefty License Fees
Sunday, June 1st, 2008 at 4:00 PM - by John Martellaro
In the long-running DVR patent dispute launched by TiVo against Dish Network, Dish has so far lost. Now Dish has, in turn, sued TiVo seeking a declaration that their recent DVR workaround no longer violates TiVo’s patent. TiVo disagrees.
In order to avoid paying a US$74M penalty imposed and then reaffirmed by an Appeals Court, Dish has devised a work around that claims to no longer violate TiVo’s patent. TiVo has told the court that "based on what we’ve been provided by EchoStar to date, we believe that EchoStar’s [Dish Network] modified software does not avoid infringement." They want the court to immediately enforce its injunction.
On Friday, Dish Network went to court in Delaware in an attempt to force the issue that their workaround does, in fact, no longer violate the TiVo patent. A judge has agreed to delay an injunction that would force Dish to turn off its DVR systems and put the infringement claim on hold until a hearing on September 3.
Dish may have yet other strategies to avoid paying the $74M penalty for patent infringement, but if they lose the decision in September, and the court finds that the workaround continues to violate TiVo’s patent, then Dish could be forced to either sign a hefty licensing agreement or shut down their customers’ DVRs.
On Monday. TiVo shares dropped sharply to US$7.67, down $0.74 for the day amidst inverstor concern about TiVo’s ability to collect on the $74M.
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