TiVo, Dish Network Reach $500,000 Settlement over DVR Patent Suit

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Dish Network and former parent company EchoStar have settled their long-running patent lawsuit with TiVo by agreeing to pay the company $500 million for unlawful infringement of TiVo’s “Time Warp” DVR technology.

The settlement follows a costly legal battle that’s not only seen Dish faced with a court order to shut down all its DVRs last month, but TiVo borrowing $150 million in March just to cover legal costs. The companies have been in legal battles with TiVo since 2004, when it first sued for infringements on the tech that allows shows to record, pause, fast-forward or rewind live television digitally.

The settlement gives TiVo $300 million immediately, with the remaining $200 million to be paid in annual installments between 2012 and 2017. As part of the settlement, Dish gets a license to continue using the patented technology, and EchoStar a license to manufacture product using the technology (EchoStar also granted TiVo a license for patents that it owns).

Additionally, and somewhat unexpectedly, TiVo has agreed to help Dish Network promote its newly-purchased Blockbuster digital video service.

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