EchoStar must pay TiVo $94m, court rules

An appeal court has upheld a ruling that EchoStar breached a TiVo patent for its digital video recorders.

EchoStar Communications Corp still owes TiVo Inc $74m in damages, up to $94m with interest, the US Court of Appeals for the Federal Circuit decided.

The appeal ruling confirmed an earlier Texas district court finding that software used by EchoStar boxes was in breach of copyright. It said it disagreed a hardware patent had also been breached, but upheld the damage award regardless.

It also told EchoStar any boxes using the offending software would have to be withdrawn. However, EchoStar told customers it would not affect them. It says it has now created software that does not breach any patents which had already been put on DVR boxes.

"This improved software is fully operational, has been automatically downloaded to current customers, and does not infringe the TiVo patent at issue in the Federal Circuit's ruling," said a statement from the company.

TiVo lawyer Matthew Zinn welcomed the decision as its share price rose more than 33%. He said: "We're very pleased by the ruling today and we feel like our efforts have been vindicated."

The firm added in a statement: "(The) ruling is confirmation of the value of TiVo's IP portfolio, which is in addition to the other benefits TiVo has to offer.

"TiVo can now continue to focus on its goal to drive greater distribution in both its standalone and mass-distribution efforts."

Some DS forum members were today cynical about the verdict. Jarrak, from Ilkeston commented: "It's almost as bad as when BT tried to patent hyperlinks."

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