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What Does The Tivo Verdict Mean To Dish Network?

By Erik

The judgment is in and TiVo has been declared the winner by the United States Court of Appeals for the Federal Circuit. This has been hailed as a potential game winning victory. So why is DISH Network celebrating its so called loss in this long and drawn out battle?

There are a few simple reasons that have led DISH Network to begin declaring a roundabout victory in the fight with TiVo that has been ongoing for the past six years. The first of these is that by losing the court battle, DISH may find itself with the opportunity to bid on being an exclusive provider of DVR technology through a contract with TiVo.

While DISH has stated that it intends to go through the entire Federal Circuit before conceding defeat, but once that money-wasting effort is complete,  it will be interesting to see just how the company goes about recuperating. This latest court case marks an important point that has been some time in coming. The costs of the legal battle have long plagued DISH Network and have had a detrimental effect on stocks.

Now the firm has reached the point where the majority of the costs are being worked into the stocks. This should allow the stocks to begin recovering their pre-lawsuit value. This will make investors quite happy as the company has taken a rather hard hit since the court battle first began.

DISH Network customers have been wondering whether or not the court ordered cease-and-desist would affect their DVR service. DISH Network has said, however, that thus far, its customers will not be impacted by the latest judgment. In a best case scenario, the company will be able to find a workable design-around that the courts will accept leaving DISH free from further contempt charges.

Another rather simple fix could involve the company having to pay a fee per each DVR enabled unit. At worst, TiVo could award DirecTV a contract as the sole DVR provider. For now though this seems like the least likely possibility. As it stands DISH appears to be coming out ahead in its loss to TiVo.

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