TiVo won a major legal case against Dish Network earlier this week, in a long-running matter that should net the struggling DVR maker at least $300 million.
The legal drama between TiVo and Dish Network first started in 2004 after TiVo filed the first lawsuit against Dish — claiming the company infringed on at least one patent owned by TiVo — with other patents noted as being violated as well.
TiVo is also seeking additional monetary damages for patent infringement, with legal cases open against Verizon and AT&T. Microsoft has stepped up and is helping AT&T defend itself against the TiVo lawsuits, but it’s unknown when rulings will be determined in these other cases.
The announcement sent TiVo’s stock shares jumping a massive 62% immediately after the legal ruling was announced.
“Today’s overwhelming victory significantly improves TiVo’s ability to win new business and the rates it can demand for its technology from future deals, while also improving penetration of its DVR advertising platform,” said Tony Wible, Janney Montgomery Scott analyst, who said savvy investors likely cashed in.
Dish not surprisingly will review the decision and will likely file an official appeal with the U.S. Court of Appeals for the Federal Circuit.
TiVo has struggled greatly to compete with rival DVR services from set-top boxes, cable operators, and other competitors — but hopes its recently announced Premiere DVR unit will help turn the company around. The release of the DVR next month coupled with at least $300 million in patent infringement award cash will likely help the company move forward.