DISH Network TiVo Battle Approaches an End

You thought it will never come to an end! But to our surprise, DISH Network versus TiVo is finally approaching an end in true Hollywood style. The final episode of the seemingly never ending courtroom saga will offer you an amazing combination of some panic, suspense and glitz of gold.

After a clear final court ruling in TiVo’s favor, DISH Network, the leading satellite TV provider in the United States is supposed to shut down every DVR across its network of over 14 million customers along with $300 million as damage charges by 30th April, 2010. So, DISH Network is left only but a few options at present:

  • DISH Network can pay $300 million damages to TiVo along with another few million as interest and infringement charges. They will also have to shut down the DVR systems involved in this case of patent infringement. This option will affect DISH TV the most.
  • DISH Network can pay the above mentioned damage charges and then make a licensing deal with TiVo to keep their DVR systems humming.
  • DISH Network can keep unlicensed DVR boxes active everywhere, whether or not paying the damages. This decision can be very expensive depending on the next step that the court takes. It may lead to further penalties and contempt-of-court issues.
  • Dish Network can buy TiVo and put an end to all legal battles and payments. Then the satellite TV provider will have the intellectual property portfolio of TiVo and will receive royalties from its competitors in the TV entertainment industry including Comcast, DirecTV and many more. Problem Solved!

However, if $300 million is an expensive choice, buying TiVo, which has an enterprise value of $1.55 billion, is a costlier choice for DISH Network. However, this deal can prove beneficial in the long run. DISH Network is also working on new satellite TV DVR software that does not infringe TiVo patent.

Which one according to you is the best choice for DISH Network? Discuss in the comment section.

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