TiVo Wants $1 Billion in Sanctions from Dish Network

TiVo Wants $1 Billion in Sanctions from Dish Network



July 15, 2009

Frankly we didn't think that Dish Network's fortune could fall much farther in its patent litigation with Tivo over digital video recording systems. There was the $73.9 million infringement jury verdict against it in 2006. Then in June, Eastern District of Texas judge David Folsom tacked on $103 million in damages owed to TiVo.

But alas, there could be more money added to the bill of DISH Network , which spun off from EchoStar Communications last year, and EchoStar Corporation, a defendant in the case. A lot more. According to a court filing, TiVo's lawyers at Irell & Manella are seeking nearly $1 billion in contempt sanctions. The figure was referenced in a filing by Dish's lawyers at Morrison & Foerster, who wanted to delay proceedings on Tivo's sanctions motion. (TiVo's motion for sanctions was filed under seal.) In their motion, available at Zats Not Funny, they argue the sanctions proceedings should not take place until the Federal Circuit rules on whether Dish must dismantle its digital video recording system, as ordered by Judge Folsom.

"TiVo does not and cannot deny that if EchoStar prevails on appeal, there will be no basis for contempt sanctions, and any briefing or consideration of that issue will be for naught," wrote Morrison & Foerester attorneys.

According to Bloomberg, Judge Folsom denied the motion and set a hearing for July 28 on TiVo?s sanctions motion. ?Judicial economy is best served by having the benefit of any sanction ruling before the Circuit when it decides EchoStar?s appeal,? he wrote.

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