A Texas jury awarded TIVO 73 million for patent infringement, E* is confident that the verdict will be overturned I just heard on the morning news.
TIVO Wins Trial
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The Investor Reaction to DISH/TiVo Case?
Given that the markets were closed Friday due to the Good Friday holiday, it was difficult gauging investor reaction to the patent infringement case involving EchoStar and TiVo.
Today could be a different matter, however, when the Street looks at the litigation win for TiVo, which convinced a federal jury in Texas that the satellite TV company infringed on its patented technology.
S&P wasted no time airing its opinion, downgrading EchoStar in a research note released Friday.
S&P's Tuna Amobi said the EchoStar downgrade "reflects our view of the surprisingly adverse, and swift jury verdict on the DVR patent suit."
Amobi added, "While the $73 million award is unlikely to hurt EchoStar's long-term finances, and a likely appeal could span years, we see possibly higher financial exposure on the court's unqualified finding of willfull patent infringement."
While the $73 million penalty is a big deal for some, others are eyeing TiVo's planned request for a permanent injunction that could impact EchoStar's DVR service.
"EchoStar has to be more concerned about a possible injunction and ultimately being forced into a licensing deal," said Ladenburg Thalmann analyst William Kidd. "EchoStar is trying to avoid licensing TiVo's technology on an on-going basis through a variety of processes, including an appeal, a separate suit of its own, as well as through a re-examination at the U.S. patent office that EchoStar hopes could invalidate TiVo's patents. These processes could take years to resolve.
"However, TiVo intends to seek an immediate injunction on EchoStar DVR sales, which could force EchoStar into an immediate agreement, if the judge agrees to act before EchoStar's appeal is decided. A licensing agreement would be an obvious but manageable negative," Kidd added, saying he thinks a licensing fee could be largely offset by incremental DVR fees.
source: www.SkyReport.com
Given that the markets were closed Friday due to the Good Friday holiday, it was difficult gauging investor reaction to the patent infringement case involving EchoStar and TiVo.
Today could be a different matter, however, when the Street looks at the litigation win for TiVo, which convinced a federal jury in Texas that the satellite TV company infringed on its patented technology.
S&P wasted no time airing its opinion, downgrading EchoStar in a research note released Friday.
S&P's Tuna Amobi said the EchoStar downgrade "reflects our view of the surprisingly adverse, and swift jury verdict on the DVR patent suit."
Amobi added, "While the $73 million award is unlikely to hurt EchoStar's long-term finances, and a likely appeal could span years, we see possibly higher financial exposure on the court's unqualified finding of willfull patent infringement."
While the $73 million penalty is a big deal for some, others are eyeing TiVo's planned request for a permanent injunction that could impact EchoStar's DVR service.
"EchoStar has to be more concerned about a possible injunction and ultimately being forced into a licensing deal," said Ladenburg Thalmann analyst William Kidd. "EchoStar is trying to avoid licensing TiVo's technology on an on-going basis through a variety of processes, including an appeal, a separate suit of its own, as well as through a re-examination at the U.S. patent office that EchoStar hopes could invalidate TiVo's patents. These processes could take years to resolve.
"However, TiVo intends to seek an immediate injunction on EchoStar DVR sales, which could force EchoStar into an immediate agreement, if the judge agrees to act before EchoStar's appeal is decided. A licensing agreement would be an obvious but manageable negative," Kidd added, saying he thinks a licensing fee could be largely offset by incremental DVR fees.
source: www.SkyReport.com
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<-- waiting for the Dish announcement that all DVRs are now inoperative until Tivo negotiates a reasonable license fee...
I think this is why DirecTV continued their deal with TiVo for another 3 years. It buys them a little breathing room. I'll predict that they will eventually make some monetary deal and revert back to Tivo as their primary DVR. Then they can replace all their own DVRs with TiVos.
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