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TiVo Sues AT&T, Verizon, Posts Quarterly Loss

26 Aug, 2009 By: Chris Tribbey

TiVo’s chief executive said Aug. 26 that his company has filed suit in Texas federal court against AT&T and Verizon Communications over charges of infringement on three of TiVo’s digital video recorder patents.

Copies of the suits were not immediately available.

“We need to stop their continued misuse of our intellectual property,” TiVo CEO Tom Rogers, said during an Aug. 26 conference call with investors. He said TiVo is seeking unspecified damages and a permanent injunction against the two companies.

At issue are TiVo’s patented multimedia “time warping” and “time shifting” technologies, and its “Automatic Playback Overshoot Correction System.” Neither AT&T nor Verizon had a statement regarding the suits.

The suits are similar to one filed by TiVo against Dish Network and its parent Echo Star, which is currently in the appeals process, after the judge in that case awarded TiVo a judgment of $103 million in June. TiVo was paid $104 million by a jury in the initial ruling in the 2006 case.

Meanwhile, lower service and technology revenue hurt TiVo results leading the company to post a $2.9 million loss for the three months ended July 31, compared to a profit of $2.9 million during the same period in fiscal-2009.

The company posted revenue of $48.8 million, down from $53.5 million for the same quarter in the previous year.

“[During the quarter] we made significant progress on developing partnerships that enable us to access previously untapped distribution opportunities, announcing important deals with RCN and Best Buy,” said company CEO Tom Rogers.

East Coast digital cable and Internet company RCN has chosen TiVo as its primary DVR partner, while with Best Buy, TiVo is working to create a new interface features for DVRs sold by the retailer.

“Best Buy will put substantial marketing muscle behind this rollout,” Rogers said.

TiVo grossed 31,000 new subscribers during the quarter, giving the company approximately 3 million total as of July 31.


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