Light Reading

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

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
5/2/2011
50%
50%

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
50%
50%
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


 

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (8) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (1) comment


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Hot Topics
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones