New Rules: Dish/EchoStar May Owe TiVo $200 Million+

There is more bad news for Dish Network and its controlling company, EchoStar, concerning the satellite distributor's dispute with digital video recording technology company TiVo.

Now a new court order will force Dish/EchoStar to pay TiVo $200 million in additional damage payments should Dish/EchoStar lose its appeal to TiVo.

Back in June, a U.S. District Court for the Eastern District of Texas jury granted TiVo $103 million plus interest.

TiVo originally wanted $1 billion in sanctions as part of a multi-year legal process, in which it won a lawsuit against Dish for illegally using TiVo DVR technology in Dish's DVR home units. The courts ruled that the technology used by Dish to get around TiVo's patents was not sufficiently different.

"We are pleased by the Court's ruling to impose contempt sanctions of approximately $200 million against EchoStar for its continued violation of a Court-ordered permanent injunction," TiVo said in a statement.

For its part, Dish Network said in a press release: "While we disagree that any amount of sanctions was warranted, the decision confirms our belief that we designed around Tivo's patent in good faith. We believe that we ultimately will prevail on appeal."

The additional ruling puts total damages and sanction at roughly $400 million, TiVo said.

TiVo's stock closed down 2% to $10.20 on September 4; Dish Network lost 0.5% to $17.15; and EchoStar had no change at $18.00.

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