Thursday, August 17, 2006

TiVo Prevails in DVR Case Against EchoStar

In the ongoing patent infringement case brought by TiVo against Echostar Communications, a U.S. District Court judge in Texas issued an injunction ordering EchoStar Communications to cease from offering their DVR products in the United States. The judge also ordered ECC to pay TiVo approximately $73.992 million in damages as awarded by the jury, prejudgment interest at the prime rate through July 31, 2006 of approximately $5.638 million, and supplemental damages for infringement through July 31, 2006 in the amount of approximately $10.317 million.

The Federal Circuit Court of Appeals in Washington, D.C. later temporarily stayed the district court injunction until it reviews the papers submitted by the parties and decides whether a stay should or should not be in effect for the duration of the appeals process. As a result of the stay EchoStar can continue to sell, and provide to consumers, all of its digital video recorder models.

TiVo sued EchoStar in Federal District Court on January 5, 2004, alleging that ECC and certain subsidiaries are violating U.S. Patent No. 6,233,389 issued to TiVo in May 2001, known as the "Time Warp" patent. The Time Warp patent discloses systems and methods for the simultaneous storage and playback of programs, supporting advanced capabilities such as pausing live television, fast-forwarding, rewinding, instant replays, and slow motion. On April 13, 2006, a Marshall, Texas jury concluded that EchoStar had willfully infringed TiVo's Time Warp patent.

For its part, EchoStar issued a statement saying "We continue to believe the Texas decision was wrong, and should be reversed on appeal. We also continue to work on modifications to our new DVRs, and to our DVRs in the field, intended to avoid future alleged infringement."http://www.tivo.com

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