(Adds EchoStar and TiVo comments, details, stock prices)
WASHINGTON Jan 31 EchoStar Communications Corp
(DISH.O) infringed a TiVo Inc (TIVO.O) patent in building
digital video recorders and must pay nearly $74 million in
damages, a court that specializes in patent cases ruled on
Once the appeal is final, EchoStar will be barred from
selling the infringing devices, the ruling said. EchoStar said
it already had a substitute for the software in question, and
that customers would not be affected.
TiVo's stock soared more than 33 percent to $9.11, a new
52-week high, and EchoStar's shares rose nearly 1 percent to
$28.63, both on the Nasdaq.
It upheld the lower court's damage award of $73,991,964.
With interest, the damages would be $94 million, EchoStar
"Because the damages calculation at trial was not
predicated on the infringement of particular claims, and
because we have upheld the jury's verdict that all of the
accused devices infringe the software claims, we affirm the
damages award entered by the district court," the court said in
"We're very pleased by the ruling today and we feel like
our efforts have been vindicated," TiVo General Counsel Matthew
Zinn told Reuters.
EchoStar said it would appeal the damage award, and sought
to reassure customers that they had a substitute for the
"This improved software is fully operational, has been
automatically downloaded to current customers, and does not
infringe the TiVo patent at issue in the Federal Circuit's
ruling," EchoStar said in a statement.
The U.S. Court of Appeals for the Federal Circuit said in
its decision that it partially affirmed a verdict from a
federal district court in Texas.
That lower court had ruled that EchoStar's digital video
recorders infringed what it called the "software" claims of a
TiVo patent. But the appeals court reversed a portion of the
lower court's decision that said the EchoStar devices also
infringed on what it called "hardware" claims.
(Reporting by Diane Bartz; Editing by Maureen Bavdek)