Microsoft has accused TiVo of patent infringement and filed legal action against the company, stepping up another confrontation between the struggling DVR company and content providers.
TiVo previously sued AT&T -- and Microsoft planned to step in on its own behalf -- but did not. Microsoft and AT&T have a very close working relationship, as AT&T uses Microsoft's Internet video platform.
Microsoft has reportedly offered to sit down and discuss the issue directly with TiVo, which could allow the two companies to avoid going to court. Microsoft wants TiVo to enter into a licensing agreement fair to both sides, but TiVo has not responded to previous offers.
TiVo didn't issue a public statement, but did indicate Microsoft's legal case has nothing to do with the legal matter between AT&T and TiVo.
TiVo already won as much as $400 million from Dish Network, and could make millions more if successful against AT&T. The additional money helps the company as it continues to struggle -- its video recorders and subscription business has severely diminished from increased DVR competition.
TiVo believes AT&T and Verizon use the TiVo "time-warping" technology with their digital video recording offerings.
There still aren't a lot of facts known about this case yet, but it looks like TiVo is willing to file legal action to ensure it is able to stay in business. If TiVo is able to take several other subscription-TV companies into court for alleged patent infringement, millions more could be made.
