Court sides with TiVo in patent dispute

updated 1:44 p.m. ET Jan. 31, 2008

WASHINGTON - A federal appeals court on Thursday upheld TiVo Inc.'s claims that Dish Network Corp. infringed on one of its patents, sending TiVo's shares up almost 29 percent.

The Court of Appeals for the Federal Circuit agreed with a lower court that digital video recorders distributed by Dish, formerly known as EchoStar Communications Corp., violated the software elements of TiVo's patent. The court overturned the lower court's ruling that Dish infringed on the hardware elements of the patent.

But the appeals court said the violation of the software claims was sufficient to uphold the entire $89.6 million in damages the lower court awarded TiVo.

TiVo sued EchoStar Communications in 2004, alleging that the Englewood, Colo.-based satellite broadcaster infringed on TiVo's patented technology that allows viewers to record one program while watching another. EchoStar Communications changed its name to Dish in late 2007.

TiVo, based in Alviso, Calif., pioneered digital recorders that allow viewers to pause, rewind and fast forward live television shows.

Shares of TiVo soared $1.95, or 28.7 percent, to $8.76 in midday trading, setting a new 52-week high. Dish shares fell 14 cents to $28.25.

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