dvrbulletin.com

A three-judge federal appeals court ruled on Thursday that EchoStar/Dish Network violated Tivo’s DVR software patent. Tivo is expected to receive about $94 million in damages and interest. As a result, Tivo’s stock soared 29% on Thursday. Naturally, EchoStar said it would appeal the ruling, which will extend litigation that has been ongoing since 2004.

Dish said in a statement:

We are pleased the Federal Circuit found for us on Tivo’s hardware claims, but are disappointed in the Federal Circuit’s decision on the software claims. The decision, however, will have no effect on our current or future customers because EchoStar’s engineers have developed and deployed ‘next-generation’ DVR software to our customers’ DVRs. This improved software is fully operational, has been automatically downloaded to current customers, and does not infringe the Tivo patent at issue in the Federal Circuit’s ruling.

So Dish customers will be able to use their existing DVRs without being affected much by this ruling.

For its part Tivo’s press release was full of joy:

“We are extremely pleased that the United States Court of Appeals for the Federal Circuit unanimously ruled in our favor in EchoStar’s appeal of the district court judgment of patent infringement, full award of damages and that the injunction, which was stayed pending appeal, was ordered to be  reinstated. Today’s ruling is confirmation of the value of TiVo’s IP portfolio, which is in addition to the other benefits TiVo has to offer. TiVo can now continue to focus on its goal to drive greater distribution in both its stand alone and mass distribution efforts.”

So essentially Tivo won on software, but not on its hardware claims. That’s ok, I guess, since Tivo is discontinuing its Series 3 HD DVRs according to Megazone at Tivo Lovers.

[tags] DVR, Tivo, Dish Network, EchoStar, lawsuit, Series 3 [/tags]

Last week, a federal judge ruled against Cablevision’s  attempt to launch a network digital video recorder, giving a victory to Hollywood. (Read the decision in its entirety here (PDF).)
Network DVRs–sometimes called nDVRs–lets users store TV shows on a cable company’s network rather than on a set-top-box. For some screwey reason, the judge ruled that those recordings would be unauthorized reproductions. Oh really? How do you figure? It’s amazing that the case even went to court!

What’s the difference where the recording is made? Whether it’s at my home or a network from my cable provider.

The studios argued in the Cablevision lawsuit that because the company was doing the recording, not individual customers, their copyrights were being violated.

Cablevision contended that its network technology was comparable to individuals recording shows in their homes because it was planning to dedicate separate storage space for each subscriber. In other words, if 10,000 subscribers decided to record the show “Lost,” 10,000 separate copies would be made in the network, Cablevision said.

The fact that Cablevision was willing to save separate copies of TV shows for every customer shows that they were willing to play fair. They could have said that they were storing all shows together, to save storage space.

A network DVR would save cable companies money since they wouldn’t have to distribute set-top DVRs to customers. It’s a forward-thinking approach, which would have left set-top box makers like Scientific Atlanta and Motorola worried about their revenue streams.

It would be a win for consumers as well. Why buy a stand-alone DVR when you can buy hard drive space on a TV provider’s network? An HD Tivo DVR costs $800, plus monthly fees of about $20 per month. Instead, customers can avoid paying $800 and have one less box under their TV sets.

So what happens if I want to host my own media remotely? Like in a network attached server, where I keep files for streaming or products like Sling or Orb that allow you to view TV shows from anywhere with an Internet connection.

Cablevision said it is thinking about appealing, which I hope they do. This judge’s decision is stuck in the 90s.

Last week, I discussed why network DVRs are the future. Despite some of their negatives, I hope they can survive.