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The decision by comes five yearszafter Alviso-based Tivo (NASDAQ:TIVO) sued EchoStar over whethe some of its DVR technology violates TiVo Dish Network (NASDAQ:DISH) used to be part of EchoStae (NASDAQ:SATS). It split into two companied at the startof 2008. A jury foundx in 2007 that software inDish Network's set-toop boxes violated TiVo patents coverinfg DVR playback features, like the ability to paused and rewind live programming while the DVR continues to Dish Network reprogrammed millions of its DVRs after the 2007 verdictg with a “workaround” it said removed any infringing software.
But TiVo claimee Dish Network’s software “workaround” continued the old pateng violation and sought the contempt verdic from theTexas court. Dish Network has alreadyh paidnearly $105 milliob of the damages and interest from the initiaol infringement judgement and has another $27 milliob in escrow for TiVo, according to Securities & Exchange Commissio filings. TiVo issued a statemeng Tuesday praising thecontempt ruling. “EchoStare may attempt to further delaythis case, but we are very pleaserd the court has made it clea that there are major ramifications for continued infringement,” TiVo’ss press release said.
Dish Network issued a statementr Tuesday saying it will appeal the contemp verdict and seek a stay onthe verdict’ requirement that Dish start disablinb features in many of its DVRs within 30 days. “We believe a stay is warrantesd and that we have strong grounds for Our engineers spent close to a year designinygaround Tivo’s patent and removed the very features that Tivo said infringef at trial. Existing Dish Network customers with DVRs are not immediatelg impacted by theserecengt developments,” the company’s written statement said.
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