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Zatz Not Funny: TiVo Sends Echostar Packing

Wow, from the news on Dave's site, it looks like TiVo won their patent suit against Echostar with TiVo's stock spiking, a $73million ruling, and a possible stop of all Dish Network DVR sales.

I've held off reporting about the case because I'm torn on the issue of software patents. Generally, I like the idea of novel patents in the material world (like actual objects), but in the software and web world, a lot of business processes and obvious ideas have been granted patents and companies have been known to strongarm their rivals with them. Patents in the Silicon Valley can be used as extortion against the competition. On the other hand, TiVo has pioneered a ton of novel concepts in home TV recording and certainly the major, original components of the TiVo OS are fair game for patent protection in my mind.

It looks like Echostar is going to appeal, but if this sticks, this could point to a lucrative future for TiVo in licensing its software to other companies producing DVRs.

by Matt Haughey April 13, 2006 in News

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