TiVo just issued this statement regarding the contempt sanctions ordered by the U.S. District Court, Eastern District of Texas, in the lawsuit against EchoStar and Dish: “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, and to award TiVo its attorney fees and costs incurred during the contempt proceedings. This brings total damages and sanctions in this case to approximately $400 million through July 1, 2009, plus attorney fees, and is exclusive of potential further damages and sanctions. Additionally, we are pleased that the Court ‘will seriously entertain the award of enhanced sanctions’ if ‘EchoStar is unsuccessful on appeal and nevertheless continues to disregard this Court’s orders.’ We are confident that this ruling brings us closer to final resolution.”
TiVo, a pioneer of digital-video recording services, had sought $974.5 million from Dish for contempt of court in their 5 1/2-year patent battle. Dish, the second-biggest U.S. satellite-television provider, and EchoStar told a federal judge in July that the company has acted in good faith and sanctions aren’t appropriate. But U.S. District Judge David Folsom in Texarkana, Texas, found a $2.25 royalty per DVR subscriber was appropriate. Dish and Echostar were ordered on June 2 by Folsom to stop using a digital-video recorder that infringed the TiVo patent. The U.S. Court of Appeals for the Federal Circuit had put Folsom’s order on hold until an appeal is decided.