Light Reading
Charlie Ergen & Co. will pay up to license TiVo's Time Warp patent, but Dish avoids having to disable millions of DVRs

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
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
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed