Light Reading

Dish, EchoStar to Pay TiVo $500M to Settle Suit

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

The seven-year DVR patent dispute between TiVo Inc. (Nasdaq: TIVO) and Dish Network LLC (Nasdaq: DISH) and EchoStar Corp. LLC (Nasdaq: SATS) has reached an end.

On Monday, the companies announced they had settled their ongoing patent litigation, with Dish and EchoStar agreeing to pay TiVo $500 million, including an initial payment of $300 million, with the remaining $200 million to be distributed in six equal annual installments between 2012 and 2017. With earlier payments factored in, Dish's TiVo-related bill will exceed $600 million.

The settlement comes about ten days after an en banc panel ruled that Dish/EchoStar must disable older MPEG-2-based DVRs that infringe on TiVo's "Time Warp" patent.

Under the agreement, TiVo granted Dish a license for the patent and some "related patents" for the remaining life of those patents, and EchoStar has issued TiVo a license for some of its DVR-related patents to cover TiVo-branded, co-branded and "ingredient-branded" products.

To further their newfound love for each other, TiVo said it will play a role in helping Dish promote the Blockbuster LLC digital video service. (See Dish Wraps Up Blockbuster Buy and Dish's Latest Buy Is a Blockbuster .)

Why this matters
The settlement puts an end to all injunctions against Dish and EchoStar and dismisses all pending litigation between the companies.

Importantly, the settlement will prevent Dish from having to disable millions of older-generation DVRs. Dish claimed to have upgraded "many" of those customers, but analysts have suggested there are as many as 3 million to 4 million infringing DVRs in the field, with some believing that the costs for product replacement and the subscriber churn could have run Dish and EchoStar anywhere from $750 million to north of $1 billion.

With the Dish/EchoStar case settled, expect TiVo to turn up the heat on its other patent cases against Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T). (See TiVo Suit Targets AT&T & Verizon and TiVo: AT&T and Verizon Won't Strike a Deal .)

For more
Read more about the DVR dispute:

— Jeff Baumgartner, Site Editor, Light Reading Cable

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:06:10 PM
re: Dish, EchoStar to Pay TiVo $500M to Settle Suit

Sanford C. Bernstein's Craig Moffett weighed in this morning to note that the settlement was for far less than many analysts were expecting.

He had earlier warned that Dish could face a "death sentence" it was faced w/having to disable up to 8 million DVRs. It's now believed that less than half than that were facing disablement and still-expensive switchouts.  But that "worst case scenario" is now by the boards.

"To paraphrase Mark Twain, reports of Dish Network's demise were greatly exaggerated," Moffett wrote in a note issued this morning.

Okay, now on to TiVo's suits against AT&T and Verizon...  

Haven't checked what Vegas has on that one, but we'll put the over/under on that one at 3 years.  How would you bet it? JB


From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Centec on Ethernet Switching

11|26|15   |   09:58   |   (0) comments

Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (9) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (2) comments

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Samsung: No Sale of Wireless Unit
Dan Jones, Mobile Editor, 11/25/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
Networking Shines in HP's Gloomy Final Earnings
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.