Website: Rapid TV News
Leading media analyst Craig Moffett from Sanford Berstain sums up the Echostar-TiVo situation snappily, saying: “Dish is now negotiating with a gun to its head”.
His comments refer to the long-running patent dispute between Echostar/Dish and DVR specialists TiVo.
As well as facing a huge financial penalty, EchoStar/Dish is also looking down the barrel of TiVo’s large-calibre gun, which might require EchoStar/Dish to disable some 8m users from their all-important digital video recorders.
D-Day is just a month from today on April 30.
Last Thursday, a US District Court granted Dish an extension until April 30 on a previous stay of his injunction ordering the satellite operator to shut off DVRs that infringe TiVo’s “Time Warp” patent.
Moffett, in a note to clients, said he could see only a 3% chance of EchoStar/Dish winning this move.
Moffett’s firm has already suggested that should TiVo win this action then EchoStar/Dish would have to fork out around $2.25-$3 per subscriber per month.
In other words, Moffett wrote “there’s an enormous risk in Dish shares”.