TiVo Forced Back to Court in Dish, Echostar Case

A federal appeals court said today that it’s going to take another look at the patent infringement suit between TiVo (s TIVO) and satellite companies Dish (s DISH) and Echostar (s SATS). The reopening of the case could throw into jeopardy a $200 million award that TiVo was granted last September, after Dish and Echostar were found to infringe on patents related to the DVR maker’s time-shifting technology.

In March the decision was upheld in a lower court ruling that found Dish and EchoStar in contempt of a permanent injunction infringing on TiVo’s patents. The court said it would take another look at the March ruling, to decide whether or not the prior judge should have given Dish another trial to determine if it was still infringing on TiVo’s patent, rather than basing the decision on a hearing. TiVo issued the following statement about the reopening of the case:

“We are disappointed that we do not yet have finality in this case despite years of litigation but we remain confident that the Federal Circuit’s ruling in our favor will be reaffirmed after all of the judges on the Federal Circuit have had the opportunity to review the merits of this case.”

The reopening of the case has thrown some cold water on TiVo’s stock, which collapsed this morning after the news of the court’s announcement spread. The March decision sent TiVo shares skyrocketing more than 40 percent. But today’s court announcement sent TiVo shares down nearly as much, with the stock falling more than 35 percent, to $6.50 in early afternoon trading.

This wasn’t the only case TiVo had against operators it believes infringed on its intellectual property; the DVR maker also filed patent infringement suits against AT&T (s T) and Verizon (s VZ) not long after its September win against Dish and Echostar

Picture courtesy of Flickr user rafaelmarquez.