Washington – A three-judge appeals-court panel signaled Thursday it is likely to rule at least partly in favor of TiVo Inc. in its patent dispute with EchoStar Communications Corp.
EchoStar is seeking to overturn a lower-court decision last year that ruled the Douglas County-based satellite broadcaster had infringed on patented TiVo technology that allows viewers to record one program while watching another. The court awarded TiVo $89.6 million in damages.
Shares of EchoStar fell $1.06, or 2.2 percent, to close at $47.88 Thursday, near the upper end of its 52-week trading range of $31.73-$52.15. TiVo’s shares fell 4 cents to close at $7.09.
TiVo sued EchoStar in 2004, alleging that EchoStar’s digital video recorders infringed on TiVo’s “time warp” technology. TiVo, based in Alviso, Calif., pioneered digital recorders that allow viewers to pause, rewind and fast-forward live television shows.
Donald Dunner, EchoStar’s lawyer, argued before the Court of Appeals for the Federal Circuit that the trial court construed TiVo’s patent too broadly.
EchoStar’s technology differs from TiVo’s in several respects and therefore doesn’t infringe on its patent, Dunner said.
Judge S. Jay Plager, however, appeared unconvinced.
If the jury accepted TiVo’s description of the scope of its patent, “isn’t that the end of the case?” Plager asked.
Plager and Judge William Bryson asked what the ramifications would be if they upheld only part of the lower court’s ruling, related to the software aspects of TiVo’s patent.
Seth Waxman, TiVo’s lawyer, said a ruling of any infringement by EchoStar would be sufficient to uphold the lower court’s decision.
