InterDigital Inc (IDCC)

[olddog967]

Even an initial win at the CAFC may not be final.



UPDATE 2-TiVo win set aside by appeals court; shares drop
Fri May 14, 2010 2:08pm EDT
Stocks



* Federal Circuit sets aside TiVo win in EchoStar case

* Orders re-hearing by the full court

* TiVo says it is disappointed

* TiVo shares fall sharply, Dish rallies (Adds TiVo comment, background, updates share prices)

WASHINGTON, May 14 (Reuters) - Shares of TiVo fell as much as 42 percent on Friday after an appeals court set aside the company's win in a patent battle over digital video recorders with rivals Dish (DISH.O) and EchoStar (SATS.O).

The U.S. Court of Appeals for the Federal Circuit said the entire court, which has 16 members, would reconsider its own March 4 decision made by only three judges.

The Federal Circuit had affirmed a contempt finding against EchoStar and Dish in their long-running patent fight with TiVo, which makes digital video recorders.

Dish and EchoStar, its former parent until a spinoff in 2008, had changed their technology to avoid infringement allegations but TiVo said, and the court had agreed, that the devices still used TiVo technology.

TiVo's (TIVO.O) shares fell as much as 42 percent to $10.05 on Nasdaq at mid-afternoon. Dish rose more than 4 percent to $22.86 while EchoStar -- whose liability in the case is limited to $5 million -- was barely changed.

A win for TiVo could potentially open up major new market and licensing opportunities. TiVo also has lawsuits against AT&T Inc (T.N), Verizon Communications Inc (VZ.N) and Microsoft Corp (MSFT.O).

"We are disappointed that we do not yet have finality in this case despite years of litigation but we remain confident that the Federal Circuit's ruling in our favor will be reaffirmed after all of the judges on the Federal Circuit have had the opportunity to review the merits of this case," TiVo said in a statement.

The case was originally filed in the U.S. District Court for Eastern Texas. That court imposed contempt sanctions against sister companies Dish and EchoStar for violating a court-ordered permanent injunction to stop making and selling DVRs.

TiVo had sued EchoStar back in 2004, and a jury found that its DVR technology infringed TiVo patents. TiVo had also been awarded $300 million in damages and contempt sanctions as of July 1, 2009.

The case is TiVo Inc vs EchoStar Corporation, Case No. 2009-1374, United States Court of Appeals for the Federal Circuit.

(Reporting by Diane Bartz; Editing by Richard Chang)