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Appeals Court Stays $103 Million TiVo Award

3 Jun, 2009 By: Erik Gruenwedel

Less than 24 hours after TiVo was awarded $103 million in damages plus interest by a federal judge in Texas in ongoing patent infringement litigation with EchoStar Communications, a federal appeals court June 3 issued a temporary stay.

“We are pleased that the Federal Appeals Court in Washington temporarily stayed the district court’s order in the Tivo litigation,” said Denver-based EchoStar. “Dish Network customers can continue using their DVRs. We believe that we have strong grounds for appeal.”

The stay remains in effect as both parties return to court and re-present their cases.

Previously, the U.S. District Court for the Eastern District of Texas concurred with TiVo’s allegation that EchoStar and satellite subsidiary Dish Network continued to infringe TiVo’s patent and violate the injunction issued by the court requiring them to disable the DVR functionality in their infringing set-top box devices.

The Alviso, Calif.-based digital video recording pioneer said EchoStar would likely attempt to further delay this case, but remianed pleased the court had made it clear that there are “major ramifications for continued infringement."

Indeed, EchoStar said its engineers had spent close to a year designing around TiVo's patent and removed the very features that TiVo said infringed at trial.

The company last year paid TiVo $104 million in jury-awarded damages in an initial ruling in the 2006 infringement case.

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