DISH Network won a somewhat unexpected stay in the recent TiVo patent infringement suit which awarded TiVo $103 million plus interest. The original ruling found in favor of TiVo’s complaint which accuses DISH of illegally using TiVo’s technology in their DVRs. DISH has already paid TiVo over $100 million. DISH is expected to appeal the ruling – a federal appeals court allowed the stay while the appeals process runs its course.
Analysts give DISH a very slim chance in winning an appeal. Absent a successful appeal, DISH will more than likely have to negotiate a licensing fee arrangement with TiVo. Such an arrangement could be an annual windfall measured in the tens of millions for TiVo. DISH can’t seem to catch a break these days. They’re one of a few multichannel video operators losing significant numbers of subscribers. Now they’re on the wrong end of a very expensive patent infringement suit.