Deadline set on Echostar’s patent dispute with TiVo

Rapid TV News -

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”.

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