Fergie's Tech Blog

TiVo's Future May Hinge on EchoStar Patent Case

In an east Texas courthouse, TiVo Inc. and EchoStar Communications have been battling over a key patent that makes digital video recorders work. A TiVo victory -- which experts deem likely -- would not only resurrect the fledgling company but also encourage a shift in DVR strategies at the major pay TV providers.

Some industry observers have put TiVo's chance of victory at 70% or more and see EchoStar paying TiVo damages of $95 million-$300 million. Possibly more important for TiVo, a ruling instantly would strengthen its hand in negotiating what have been very elusive licensing deals with cable TV companies that have been selling their own less-expensive DVRs and cutting TiVo out of the loop.

That TiVo sued EchoStar in tiny Marshall, Texas, was no accident, said Bradford Lyerla, intellectual property attorney and partner with Marshall, Gerstein & Borun, a specialty firm in Chicago. Juries there, Lyerla said, find in favor of the plaintiffs in patent trials about 80% of the time.

TiVo is suing EchoStar, the parent of the Dish satellite TV service, claiming it stole TiVo's technology that allows users to digitally record one show while watching another.

posted by Fergie @ 4/04/2006 06:10:00 AM