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Tivo, Echostar Debate Over Patent Office Rulings

May 24, 2006  •  Post A Comment

Shares of TiVo fell about 4 percent Wednesday after EchoStar Communications said patents held by the digital video recorder pioneer had been rejected by the U.S. Patent and Trademark Office.

EchoStar, the second-largest U.S. satellite-television provider, is appealing a jury verdict from last month that found it had infringed on DVR patents held by TiVo. The jury ordered EchoStar to pay $73 million in that case.

EchoStar said Wednesday that the patent office ruling will bolster its appeal.

The news helped push down TiVo’s stock price 27 cents to $7.01 a share at midday, and prompted TiVo to issue a statement challenging EchoStar’s take on the matter.

“The level of misleading spin that EchoStar is putting out with respect to our patent case against them is quite extraordinary,” TiVo’s statement said. “While certain of the patent claims were rejected by the patent office, this should in no way impact the jury verdict.”