EchoStar must pay TiVo nearly $200 mil

DVR maker had sought $974.5 mil for contempt of court

NEW YORK -- Dish Network corporate sibling EchoStar Corp. must pay nearly $200 million to TiVo Inc. for contempt of a court order that required the satellite TV technology firm to stop providing its DVR service after losing a patent-infringement ruling in the two firms' long-running patent litigation.

DVR pioneer TiVo had been looking for $974.5 million for contempt of court after the court had issued a permanent injunction in the case that has dragged on for 5 1/2 years.

TiVo said the sanctions ordered by the U.S. District Court, Eastern District of Texas bring total damages and sanctions in the case to about $400 million.

"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," TiVo said. "We are confident that this ruling brings us closer to final resolution."

Despite the sanctions, Dish and EchoStar portrayed the decision as a victory of sorts, too.

"We are pleased that the district court rejected Tivo's request to award a billion dollars in sanctions and that it found that any violation of the injunction was not willful," they said. "While we disagree that any amount of sanctions was warranted, the decision confirms our belief that we designed around Tivo's patent in good faith. We believe that we ultimately will prevail on appeal."

TiVo shares were up more than 7% as of 2:10 p.m. EST.
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