TiVo Dealt Setback Over Time Warp Patent

TiVo's time-warp patent is at the heart of its DVR technology and a lucrative infringement suit against Echostar...and there's just been a preliminary ruling rejecting the patent as invalid.

DVR pioneer TiVo has been engaged in a long-running patent dispute with Echostar, in which Echostar has been found guilty of infringing on TiVo’s so-called "time warp" patent for time-shifting broadcast content. Although infringing Dish Network DVRs are still functioning pending appeal, TiVo has been awarded more than $200 million in damages after the "time warp" patent was found to be valid and enforceable back in late 2007.

Now, Echostar might just have a glimmer of hope: in a re-examination process prompted by Echostar’s appeal, the U.S Patent and Trademark Office has issued a preliminary rejection of TiVo’s time warp patent (6,233,389), owing to two prior patents involving similar technology. Dish Network wasted no time hailing the decision:

"These software claims are the same claims that EchoStar was found to have infringed in the contempt ruling now pending on appeal," the company wrote in a statement. "We believe that the PTO’s conclusions are highly relevant to the issues on appeal as well as the pending sanctions proceedings in the district court."

For its part, TiVo downplayed the ruling, noting a preliminary rejection is a first step in a re-examination process, and TiVo has not yet had any opportunity to defend the patent, present its views, and distinguish its technology from the previous patent claims cited by Echostar. TiVo doesn’t believe the time warp patent will ultimately be overturned—especially since it recently weathered re-examination as part of the patent infringement case.

"TiVo believes that the PTO’s preliminary finding will not affect EchoStar’s appeal of the June 2009 ruling by the United States District Court for the Eastern District of Texas finding EchoStar to be in contempt of court," the company wrote in a release.