Justice can be slow, but it's finally smiling kindly on TiVo's
The U.S. Patent and Trademark Office has reaffirmed TiVo's patent infringement claims against EchoStar
The case's chewy center is TiVo's Time Warp patent, which is essentially at the heart of any time-shifting digital video recorder. TiVo partners Comcast
This is a big deal for TiVo, and yesterday's 10% late-afternoon pop on the news confirms the magnitude. If TiVo can't enforce its intellectual property, cable and satellite television providers may choose to walk away. On its own, TiVo is struggling to retain its subscriber base. TiVo's audience has shrunk from 3.1 million to 2.4 million accounts over the past year, and it has rattled off six straight quarterly losses.
Yesterday's patent decision is final. EchoStar can't appeal the ruling. However, the U.S. Court of Appeals for the Federal Circuit must still enforce the injunction against EchoStar.
EchoStar is likely to pay, or at the very least settle with TiVo. Nearly every legal decision has gone in TiVo's favor during this lengthy process. Getting this decision out of the way will provide comfort for DISH Network customers who fear disruptions in their DVR service. Beyond the monetary booty, TiVo can also use the opportunity to focus on growing its subscriber base.
TiVo boxes are popular with couch potatoes who want to zap through commercials during pre-recorded shows. The company probably wishes that it could have fast-forwarded through the years of legal wrangling, but at least all that waiting seems to have paid off.
What will it take for TiVo to win back its mojo? Share your thoughts in the comment box below.