EchoStar’s Dish Network will have to pony up nearly $200 million to TiVo for violating the company’s patent and using its digital video recorder technology since April of last year.
TiVo claimed victory, while EchoStar seemed pleased U.S. District Court Judge David Folsom called the nearly $1 billion TiVo had been seeking "unreasonable," but still said it would appeal the ruling.
"While we disagree that any amount of sanctions was warranted, the decision confirms our belief that we designed around TiVo’s patent in good faith. We believe that we ultimately will prevail on appeal," the company said in a statement.
Folsom said the court found it "distasteful" that Dish marketed its DVRs as "better than TiVos" while it was actually using TiVo’s patent.
A rate of $2.25 per DVR subscriber per month was an appropriate court sanction, the court said.
Echostar’s Dish has paid TiVo $400 million already plus attorney fees. In a ruling earlier this year, Folsom ordered Echostar to pay $192.7 million to TiVo for violating its patent up to April 2008.
TiVo also filed patent infringement lawsuits against AT&T and Verizon last month.
Shares in TiVo were up 54 cents or 5.5 percent to $10.34 while DISH shares were up 88 cents or 5.4 percent to $17.18. EchoStar shares were unchanged at $18.00.