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Appeals Court Temporarily Blocks EchoStar Injunction

18 Aug, 2006 By: Erik Gruenwedel

A federal appeals court Aug. 18 temporarily stayed a U.S. District Court judge's ruling granting digital video recording pioneer TiVo Inc. permanent injunction against satellite provider EchoStar Communication's own DVR device.

Judge David Folsom earlier in the day had ordered Englewood, Colo.-based EchoStar — parent of the Dish Network, the country's second largest satellite TV provider with 12.5 million subscribers — to pay Alviso, Calif.-based TiVo $89.8 million, including interest and supplemental damages, awarded by a Marshall, Texas jury in April.

TiVo sued EchoStar in 2004 for patent infringement claiming the company had violated its patented “Time Warp” technology that allows for the simultaneous storage, pausing, fast-forwarding, rewinding, slow motion and playback of live television.

EchoStar, in a statement, said it was pleased with the appeals court's ruling pleased while it considers a longer-term stay of that injunction. The ruling allows EchoStar to continue to sell and provide to consumers all of its digital video recorder models.

“We continue to believe the Texas decision was wrong and should be reversed on appeal,” said EchoStar. “We also continue to work on modifications to our new DVRs, and to our DVRs in the field, intended to avoid future alleged infringement.”

TiVo, in a statement, said it was “very pleased by recent developments” and downplayed the appeals court's decision stating the temporary stay was not based on a consideration of the merits of EchoStar's request and was implemented to preserve the status quo while the court considers the parties' legal documents.

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