TiVo and DISH Bury the Hatchet

TiVo was one of the first two companies to come out with digital video recorders (DVR) and the one to eventually dominate the market and kill off the video cassette recorders (VCR). (They will not be missed!) But then the consumers rapidly shifted from over-the-air television to subscription service with cable or satellite. TiVo deftly stepped into the new market, putting its technology into the subscription service set top boxes. For a price. DISH Network and its former subsidiary, EchoStar, decided to offer their own DVR technology to their customers, and TiVo sued them for patent infringement.

Seven years later, after a series of seesaw decisions that went one way then the other, the two sides have settled. Each has agreed to grant licenses to the other for certain patents. And DISH and EchoStar will make a cash settlement with TiVo, paying $300 million now, plus an additional $200 million divided into annual payments for the next six years.

The end result is that DISH and EchoStar will be able to continue to offer its DVR products and services to its customers, and TiVo has a tidy bundle of cash to help fund its future.