Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



TiVo Sings a Happy Song

Dish Network (Nasdaq: DISH  ) and EchoStar Communications (Nasdaq: DISH  ) are running out of second chances. A federal court of appeals just confirmed that a lower court was correct to say that TiVo (Nasdaq: TIVO  ) had valid claims of patent infringement against the bifurcated satellite operator.

The decision reversed two claims of hardware-related infringement, but reaffirmed the two software decisions in TiVo's favor. Damages were kept unchanged at $74 million plus another $20 million in interest accumulated since the original decision, because the fine wasn't based on individual claims but rather on the existence of set-top boxes that broke patent rules. Oh, and everybody please pay your own lawyers.

The decision leaves Dish with nowhere left to go but U.S. Supreme Court, and the company might even call it a day at this point and just settle the account. Unless there's another round of appeals,  the companies are sure to hammer out some kind of licensing deal akin to what TiVo already has going with cable giant Comcast (Nasdaq: CMCSA  ) and the other satellite TV provider, DIRECTV (Nasdaq: DTV  ) .

This could, as we discussed in November, be the genesis of TiVo as a serial software licensor that stands to profit from every DVR device on the market. The Comcast deal has proven that set-top boxes made by Motorola (NYSE: MOT  ) can look, feel, and act like the real TiVo deal after an automated software update. There's no reason why Scientific-Atlanta hardware from Cisco Systems (Nasdaq: CSCO  ) wouldn't pass the same test, and the same goes for untold hordes of other knockoffs.

Falling back on this momentous and now nearly incontrovertible legal victory, TiVo calls the tune in those negotiations. And it will make some beautiful music. I'd suggest "Money" by Pink Floyd, the other "Money" as sung by the Beatles, or ABBA's "Money, Money, Money." The one riff I'd stay away from is Dire Straits' "Money for Nothing" because TiVo has worked hard for its fair share and richly deserves to be paid. In my humble opinion, of course.

Further Foolishness:

Read/Post Comments (0) | Recommend This Article (11)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 568289, ~/Articles/ArticleHandler.aspx, 10/26/2016 11:59:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,217.48 48.21 0.27%
S&P 500 2,143.21 0.05 0.00%
NASD 5,271.65 -11.75 -0.22%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 11:43 AM
TIVO $20.15 Up +0.05 +0.25%
TiVo CAPS Rating: **
CMCSA $62.85 Down -1.67 -2.59%
Comcast CAPS Rating: ***
CSCO $30.82 Up +0.48 +1.57%
Cisco Systems CAPS Rating: ****
DISH $58.27 Down -0.49 -0.83%
DISH Network CAPS Rating: **
MSI $74.28 Up +0.12 +0.16%
Motorola Solutions CAPS Rating: ***