TiVo on Friday won $200 million in extra damages from satellite TV provider DISH and its sibling EchoStar. The award comes after TiVo successfully argued that DISH and EchoStar were in contempt of an injuction that prevented the two from selling DVRs that allegedly infringed on TiVo's patents for its Time Warp feature.
Despite recently being awarded some $190 million in the long-standing legal battle against DISH Network and EchoStar over patents in DVRs, TiVo is seeking nearly $1 billion in contempt sanctions, according to a filing disclosed by TiVo with a US District Court for the Eastern District of Texas. While EchoStar was ordered by the federal judge in Texas to disable the functions on the majority of its recorders in subscribers' hands, EchoStar instead claims it built a "design-around" that avoids the patents in question.
Fresh from a win against EchoStar, TiVo is set to tie directly into pay-per-view systems as well as Time Warner's cable network, according to two sources. The DVR producer is said by Bloomberg to be talking with more than one pay-per-view provider to either allow its recording directly or else to license out the technology for third-party hardware or software. Details are vague, but it would be separate from online-only support for Amazon VOD, Netflix and other services.
A federal judge in Texas has awarded TiVo approximately $190 million in damages in the continuing legal battle with DISH Network and EchoStar, according to Reuters. The conflict involves infringement of patents for technology used in the company's DVR set-top boxes. The judge previously ordered an injunction to prevent the accused companies from using the patented technology in their devices, although TiVo claims the products continue to replicate its Time Warp features.
EchoStar has introduced the T2200S, a cable version of its SlingLoaded DVR that was designed to work with Dish Network. The new device is compatible with any Tru2way cable system and provides standard DVR features in addition to integrated Slingbox functionality. The box features a 1TB hard drive, dual-tuner and Multimedia over Coax Alliance (MoCA) support, a built-in DOCSIS cable modem and a SlingGuide search engine.
Sirius XM on Tuesday morning said it has agreed to give an equity stake to Liberty Media in a deal worth $530 million. Best known as the owner of the DirecTV satellite service, Liberty is offering a $280 million emergency loan to cover both an immediately due $172 million debt for Sirius XM and to cover related financial costs. An extra $150 million also goes specifically to the XM half of the satellite radio provider, while Liberty is further volunteering to pay off about $100 million of Sirius XM's existing loans.
Sirius XM on Friday took emergency steps to save itself by starting a debt exchange. The company says it has started a deal that will swap about $172.5 million of the convertible senior notes keeping the company afloat for equivalents that will expire at the start of June 2011. The exchange would give the company about 1.5 years of extra time to pay the portion of the debt, which would otherwise have come due in December this year.
People aware of the situation have told the New York Times that satellite radio provider Sirius XM is readying itself for the possibility it may declare Chapter 11 bankruptcy. Although still solvent, the company is believed talking with experts in bankruptcy cases and restructuring and has made enough progress in the necessary documents that it could make its declaration "within days." No official signals have been given regarding a potential collapse.
Sources allegedly familiar with the situation tell the Wall Street Journal that EchoStar is taking steps that may lead to a buyout of Sirius XM. The satellite TV provider has reportedly bought up some of about $300 million of Sirius XM debt that must be paid back on February 17th, with the possibility of buying out more debt that would be owed in May. EchoStar would potentially use the sudden influence to either get equity in the target company or else sit in a position of power that lets it force a deal should Sirius XM go bankrupt or otherwise need help from its bank.
Several founders and top executives at Sling Media are parting ways with the company, following plans originally established in 2007 when the company was acquired by EchoStar for $380 million, according to paidContent.org. Brothers Blake and Jason Krikorian will depart, leaving their positions as CEO and SVP of business development, respectively. Jason Hirschhorn and Ben White will leave vacancies for president and chief creative officer of the Sling Media Entertainment Group, while the VP of sales, Greg Wilkes, will also seek other opportunities.
EchoStar and DISH today were told by the US Supreme Court to pay TiVo $104 million for allegedly infringing on some of the DVR maker's patents. The decision comes following an unsuccessful appeal of an original 2006 decision by EchoStar and DISH and will potentially increase further if additional patent lawsuits and claims of contempt are decided in TiVo's favor. The set-top box producer last month accused DISH and EchoStar of violating a stop placed on their own DVRs by continuing to sell satellite TV DVRs with software TiVo says copies its features.
In response to the ruling against the Dish Network, the company writes that it is disappointed with the court's rejection for an appeal, but that it will not affect current or future customers. According to the note, EchoStar has already developed and deployed a new version of the DVR software to customers as an automatic download. Dish claims the new software does not infringe on patents held by Tivo Inc.
Sling's long-awaited Sling Catcher is suffering from a delay that will most likely push its release to late 2008. The delay was discovered by Engadget reader "Christopher", who was a prospective customer of Sling's, noting that the vice president of sales Gregg Wilkes sent him an email informing him that the device was not up to the company's high standards. Wilkes also cited that the company's recent acquisition by EchoStar has caused for some complications.
EchoStar has formally split up in a way that could impact the future of Sling Media's Slingbox devices, based on details of an SEC filing. The company has formally changed its name to DISH Network. The change reflects the former EchoStar's core businesses of satellite TV service and producing its own set-top boxes, according to the update. Part of the company, now called Echostar Holdings, will break away from DISH and carries Sling Media with it. The Slingbox maker was bought by EchoStar in September and was originally believed to be used for adding Internet-based remote viewing for DISH subscribers.
