TiVo has $250 million in cash, no debt, and a very low cash burn rate.
Microsoft recently filed a patent infringement suit against Tom Tom. Were they just trying to stay afloat or were they making a smart business move? Is filing a lawsuit to protect intellectual property an act of desperation? Is obtaining a patent an act of desperation? I mean, if a company isn't going to protect a patent then why bother to get one?
You mean aside from the fact that Tivo ran a net loss of 7.7 Million in 2009 YTD? The big difference between Microsoft and Tivo? Microsoft is profitable... Tivo isn't. Tivo is a tiny company, losing money, with a small cult following. Microsoft is one of the world's largest, and most profitable companies. You're talking apples and oranges here.
Besides, when it comes to intellectual property, the courts tend to shy away from the whole 'look and feel' arguments. When Microsoft first came out with Windows, Apple sued them for infringement base on the 'look and feel' argument. That was summarily rejected, because it's too vague (especially since Apple didn't develop the architecture surrounding their interface - Xerox did). The courts asked Apple to specify - what specifically in their interface could really be seen as intellectual property. Answer - the trash can. Which is the reason that Windows uses a recycle bin in their interface.
Tivo didn't start the DVR industry. There were predecessors (albeit not as successful out of the gate). And they're not the only ones with over-shoot compensation. The piece that they have patented, like I said, has to do with the algorithm which determines how much to compensate based on the use. Verizon's DVR doesn't have that.
Protecting intellectual property is fine, but I just don't see the merit in that one filing. I just don't believe that Tivo has a case.