http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/ Engadget HD Comments for DISH / EchoStar ordered to pay TiVo $190 million in patent infringement case http://hd.engadget.com/media/feedlogo.gif http://hd.engadget.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/Jun 2nd 2009 10:29PMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/Jun 2nd 2009 11:29PMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/
TiVo won't because the current order is enough to force Dish to buy a license on TiVo's terms.]]>Jun 2nd 2009 11:46PMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/
So what will Tivo do with the $190 million? Will they use it as a jump start to finally stop operating out of the red? Will they use it to fund development on a new Series 4 Tru2Way box? Will they put some into R&D for a reworked user interface?


]]>Jun 3rd 2009 12:53AMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/
TiVo patented a hardware and software implementation for DVR functionality on low-cost, low-performance hardware. Most current DVRs use that implementation, because it's the cheapest way to produce a DVR. If cable and satellite companies used high-performance AMD and Intel CPUs in their boxes, they'd have no need for TiVo's implementation. But they all want to build a box for $200, not $800, and TiVo's patents help to make that possible with today's technology.

(Eventually, faster hardware will eliminate the need for the patents at issue in this case.)

Comcast, Cox, and DirecTV all have licensing agreements with TiVo. Dish Network, Cisco, Macrovision (Passport Echo), Moxi, Time Warner, and Verizon do not. The TiVo patents are not applicable to computer software like Beyond TV, WMC, all of which run on high-performance PC hardware.

Echostar's final bill will be significantly higher than $190 million. Last October, Dish Network paid $104 million after interest for infringement that occurred up until April, 2006. Now they'll pay another $104 million plus interest -- probably closer to $125 million after interest -- for infringement between then and now. That amount was calculated based on $1.50/mo per infringing SD DVR.

Assuming the U.S. Court of Appeals affirms this decision, Dish Network will have to license the TiVo's patents to continue service on its older DVRs. This 2004 case only pertains to Dish Network's older SD DVRs, but for any settlement, TiVo will undoubtedly demand a percentage of the HD DVR fees too. TiVo was awarded $1.50/mo per DVR for infringement on the SD DVRs, so they'll probably want something along those lines.

DirecTV struck an agreement with TiVo before the outcome of the Echostar case was known, so they got a much better deal. DirecTV won't pay TiVo a dime for DVRs running its own software, but next year, they will offer the TiVo software as an option on their DVRs. DirecTV will pay TiVo about $2/mo for every customer that chooses the TiVo software. It shouldn't cost customers extra (i.e. DirecTV is expected to foot the bill), although we won't know that for certain until it's available.

As for what TiVo will do with that money, your guess is as good as any. TiVo has averaged about $60 million per year in R&D; perhaps that will increase with this influx of cash.]]>Jun 3rd 2009 3:25AMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/
x - September 9, 2006 ==> $104 million, after interest, paid October 2008

September 9, 2006 - April 18, 2008 ==> $103 million PLUS back interest due

April 18, 2008 - now ==> amount to be determined in hearings In June and July]]>Jun 3rd 2009 2:23PMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/Jun 3rd 2009 5:01PMhttp://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/http://hd.engadget.com/2009/06/02/dish-echostar-ordered-to-pay-tivo-190-million-in-patent-infri/
Now I could see if Dish Network took the exact same chipset as the Tivo, and threw very simular (although it would be different unless they had help from a tivo insider spy) code on it. To me it still doesn't have merit because the UI is vastly different, and Tivo items such as Wishlists, Season Pass, TivoToGo, etc.. do not exist, and if they would its under a different name and UI.

But then again, are all light bulb manufacturers paying royalties to GE (or whatever company took over Thomas Edison's invention)...

Just like playing devils advocate here :-)
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