The United States Court of Appeals for the Federal Circuit has upheld TiVo’s patent infringement case against Dish Network, potentially clearing the path for Dish Network DVRs to be ordered shut down for infringing on TiVo technology.
"Today’s ruling is confirmation of the value of TiVo’s IP portfolio, which is in addition to the other benefits TiVo has to offer," the company wrote in a statement. "TiVo can now continue to focus on its goal to drive greater distribution in both its stand alone and mass distribution efforts."
The patent battle between TiVo and Dish Network (formerly Echostar)got started in 2005 over TiVo’s so-called "time warp" patent (USPTO #6,233,289) enabling users to "time-shift" broadcast television programming to times more convenient for them—including the ability to pause and rewind live broadcasts. A jury ruled in TiVo’s favor in August of 2006, awarding the company $74 million in damages; EchoStar countersued, but the validity of TiVo’s patent was upheld in November.
The court’s unanimous decision (PDF) is a strong win for TiVo: in addition to the validity of its patent, TiVo walks away with the jury verdict and the damage award. Dish Network can appeal to the U.S. Supreme Court, but otherwise faces the unpleasant decision of whether to comply with a permanent injunction and shut down its DVR business and service, or come to an arrangement with TiVo—likely a very expensive arrangement—to license the "time warp" patent.
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