TiVo, EchoStar case ends with $500 million payout

After several years of litigation, the patent-infringement case that TiVo launched against Dish Network and EchoStar has come to an end. Dish Network and EchoStar have agreed to pay TiVo $500 million to settle the case, including an upfront payment of $290 million from Dish and $10 million from EchoStar. Between 2012 and 2017, the companies will pay TiVo the remaining $200 million in equal installments. The parties also agreed to eliminate all pending litigation between them. The battle between the companies started in 2004 when TiVo claimed EchoStar, which was Dish Network's parent company before the satellite provider was spun off in 2007, violated its "multimedia time warping system patent." That patent covers how DVR users can watch one program while another is recorded. For its part, TiVo felt vindicated. The company said last month that after a long wait, it finally had the ruling it needed to ensure it could receive the damages it has been seeking for years.

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