UPDATED TiVo (s TIVO) shares are rocking this morning, up more than 40 percent after a federal appeals court upheld a lower court ruling that found Dish (s DISH) and EchoStar (s SATS) in contempt of a permanent injunction against it for infringing on TiVo patents. “Because we find that the district court did not abuse its discretion in imposing sanctions against EchoStar, we affirm the finding of contempt,” the court wrote in its ruling.
The ruling upholds a $200 million award that was granted to TiVo last fall by a federal judge in Texas. That was still much less than TiVo had hoped for, as it was seeking $1 billion in damages from Dish and EchoStar.
TiVo released the following statement after the court issued its ruling:
“We are pleased that the United States Court of Appeals for the Federal Circuit fully affirmed the district court’s finding of contempt against EchoStar, including both the disablement and infringement provisions. Additionally, this ruling paves the way for TiVo to receive the approximately $300M in damages and contempt sanctions awarded to us for EchoStar’s continued infringement through July 1, 2009. We will also seek further damages and contempt sanctions for the period of continued infringement thereafter. We will continue our efforts to protect our intellectual property from further infringement.”
TiVo has continued its legal assault on operators that it believes infringe on its intellectual property, suing AT&T (s T) and Verizon (s VZ) not long after its win against Dish and Echostar. Even so, the company has had a hard time retaining customers, as the number of subscribers to its DVR service has fallen steadily over the last several quarters. But TiVo hopes to stem some of those losses with the release of its new TiVo Premiere set-top box and some heavy marketing muscle from Best Buy (s BBY).
Update: Dish issued its own statement following the TiVo ruling, saying that it will seek an en banc review by the full Federal Circuit:
“We are disappointed in the Federal Circuit’s split decision, but are pleased that Judge Rader agreed with our position. Therefore, we will be seeking en banc review by the full Federal Circuit. We also will be proposing a new design-around to the district court for approval. At this time, our DVR customers are not impacted.”
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