After decades of DVR patent litigation, the court’s most recent decision has forced EchoStar (SATS) and DISH Network into a $500 million settlement with TiVo. Above and beyond the court-sanctioned penalty of $100+ million paid in 2008.
As the story goes, TiVo approached DISH way back when to partner and dropped off an early DVR for evaluation. Well, a deal didn’t get done and that DVR was never seen (by TiVo) again. Yet the underlying tech was reverse engineered, finding its way into EchoStar’s own DVR offerings. And, thus, TiVo filed suit. It’s been a long and winding road. Including a sleep-inducing visit to the US Courts of Appeals by yours truly. While most other corporate entities would probably have settled sooner at a smaller cost, DISH/Echo CEO Charlie’s Ergen’s strategy appears to have been dragging litigation out as long as possible until they either caught a lucky break or TiVo ceases to exist. Heck, TiVo challenged the courts to do the right thing and wrap this up in a timely fashion. It didn’t happen, DISH/Echo were found in contempt (again), and here we are. $500 million isn’t the $1 billion (!) TiVo was posturing for. However, for a company that has very rarely found profitability by actually selling its own product, this is a huge windfall and the respective parties can finally put it to bed. Assuming the courts let them.