Boost comes after Dish Net dispute ruling
TiVo stock got a 29% boost on Thursday after a federal appeals court ruled in its favor in an ongoing patent dispute with Dish Network.
If it holds up, the ruling could be a major boost for TiVo as it seeks licensing deals with cable and satellite companies like the ones it already has with Comcast and DirecTV. Potential patent infringement suits could be a major incentive to other providers of DVR service to do business with TiVo.
As sales of its hardware have significantly slowed in the past couple of years, TiVo has focused more on software licensing and advertising technology deals.
The appeals court upheld a lower court ruling that Dish’s DVR service violates TiVo’s software patents, though it overturned a ruling that it also violated hardware patents. Nonetheless, the court upheld an existing $74 million ruling against Dish along with an injunction against the satcaster’s DVRs.
A Dish spokesman told the Associated Press that the company will ask the appeals court to reconsider its decision and said it won’t have to turn off existing DVRs since it has already downloaded alternative software to them that doesn’t violate TiVo patents.
TiVo also got a boost Thursday when CBS signed on to use its research service, which provides information on DVR users’ behavior. NBC Universal is the only other TV conglom that’s a client, though numerous ad agencies are subscribers.
TiVo stock closed at $8.77.
(The Associated Press contributed to this report.)