TiVo must get $103m from Echostar

Chris Forrester

Echostar must pay TiVo an immediate $103m plus interest, a US Court has ruled. The two companies have been squabbling for more than 5 years over TiVo’s PVR/DVR technology.

The words from the US District Court Judge David Folsom at the hearing were not gentle to Echostar. “By not disabling DVR functionality in adjudged receivers that had been placed with end users, Echostar failed to comply with the plain language of this court’s order,” he wrote in his judgement. “Instead of requesting review of this court’s order by itself or another court, Echostar merely ignored this court’s order because it subjectively believed it to be improper or overly broad,” Folsom wrote. “This cannot be allowed.”

Echostar, somewhat ignoring the judge’s ruling, says it will apply for the decision to be stayed, a strategy that has worked well in the past. Echostar said it has “strong grounds for appeal” and assured Dish customers with DVRs that they “are not immediately impacted by these recent developments.”

TiVo’s shares have responded well, up 40% at one point, while Echostar’s broadcasting arm, Dish, fell back 7%.