TiVo and EchoStar Communications headed to a Texas courtroom Wednesday to argue over TiVo’s claim that EchoStar’s Dish Network infringed on TiVo’s patent on a “multimedia time-warping system,” the time-shifting technology inside the digital video recorder maker’s set-top boxes.
and courtroom Wednesday to argue over TiVo’s claim that EchoStar’s Dish Network infringed on TiVo’s patent on a “multimedia time-warping system,” the time-shifting technology inside the digital video recorder maker’s set-top boxes.
The two sides are scheduled to face off in a Federal District Court in Marshall, Texas before Judge David Folsom. TiVo was issued a patent for the technology in 2001, but EchoStar said it patented similar technology between 1998 and 2003, including a patent on “interruption tolerant video program viewing.” TiVo is charging that EchoStar is infringing on its technology for watching a TV show recorded earlier on one channel while simultaneously recording a show on a different channel.
Marshall, TexasShares of TiVo rose $0.10 to $7.15 in recent trading, while EchoStar shares fell $0.05 to $28.98.
EchoStar’s Dish Network is the second largest satellite TV service, behind DirecTV. While TiVo has been providing DVR set-top boxes for DirecTV, it has no agreement with Dish Network, and even DirecTV plans to begin distributing its own set-top boxes next year.
But a win against EchoStar could help the Alviso, California-based company secure patent-licensing fees from Englewood, Colorado-based EchoStar, as well as challenge other satellite and cable TV companies that offer DVR technology without TiVo’s help.
TiVo’s competitors in the DVR industry include Motorola, News Corporation’s NDS unit, and Cisco Systems’ Scientific Atlanta unit.
MotorolaScientific AtlantaJeff Weir, an external spokesman for TiVo, declined to comment on pending litigation, as did EchoStar spokesperson Kathie Gonzalez.
Pre-Trial Maneuvers
American Technology Research analysts Rob Sanderson and Jeff Schreiner wrote in a research note that they believe the trial will take about a month. They note that the two sides have maneuvered over the past month to end the trial early by filing summary judgment motions before the case could go to a jury.
analysts Rob Sanderson and Jeff Schreiner wrote in a research note that they believe the trial will take about a month. They note that the two sides have maneuvered over the past month to end the trial early by filing summary judgment motions before the case could go to a jury.
Judge Folsom dismissed the motions and wants a jury to hear the issues.
The analysts believe the case could go either way with a jury. However, the Associated Press noted that federal courts in Marshall and other East Texas cities tend to handle patent cases quickly, which could favor TiVo’s prospects.
East TexasBut TiVo’s chances of forcing other satellite and cable providers, as well as DVR makers, to pay up are even more uncertain.
“Even with a win, we do not believe TiVo has a strong chance to license the industry,” wrote Mr. Sanderson and Mr. Schreiner.
They noted TiVo’s checkered success with past litigation and believe the company may have to cross-license DVR technology from other companies if it wants to succeed in court.
The company filed suit against ReplayTV over the same patent it is charging EchoStar with infringing, but had to drop the suit later because of ReplayTV’s own intellectual property.
Gemstar-TV Guide International also sued TiVo over patent infringement and the two companies ended up striking a cross-licensing arrangement.
also sued TiVo over patent infringement and the two companies ended up striking a cross-licensing arrangement.
EchoStar has also filed a countersuit against TiVo alleging patent infringement, but that case won’t go to trial until next year.