The three-judge appeals court panel today said the earlier changes made by Dish were "not a major redesign of the software."

Following today's ruling, TiVo issued a statement saying Dish now  owes it $300 million in damages and contempt sanctions. Additionally, TiVo said it would seek further damages.

"We will continue our efforts to protect our intellectual property from further infringement," TiVo said.

TiVo's stock soared today following the court ruling.


Swanni's Take:
Once again, Dish's stubbornness -- or I should say, the stubbornness of Dish CEO Charlie Ergen -- has put the company in an Indiana Jones-like situation of peril.  If it can't persuade the court that its new DVR software is clearly different than TiVo's software, Dish will be forced to either disable every subscriber's DVR or seek peace with TiVo by giving them hundreds of millions of dollars to license its DVR software.

Either way, it would be a serious blow to Dish's financial fortunes and strategic flexibility.

Ergen should have settled this case long ago -- probably after the lower District court first sided with TiVo -- and made a deal with TiVo to use their DVR software. If he had, Dish would not be in the terrible situation that it is today.

Also see:
Consumer Reports: 'Best Buys' For HDTVs

10 Best-Selling Blu-ray Movies!

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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