US court denies Dish patent appeal

SAN JOSE, Calif. - A federal appeals court said Friday it won't reconsider a ruling favoring TiVo Inc. in its patent dispute with Dish Network Corp.

The decision puts TiVo closer to receiving the $94 million a lower court awarded the Alviso, Calif.-based digital video recorder maker for Dish Network's patent infringement. It also sets an important legal precedent that gives TiVo leverage as it negotiates partnerships with other satellite and cable TV providers who want to use DVR technology.

In January, the U.S. Court of Appeals for the Federal Circuit agreed with a lower court that DVRs distributed by Dish, formerly known as EchoStar Communications Corp., violated the software elements of TiVo's patent. The ruling overturned the lower court's finding that Dish also infringed on the patent's hardware elements.

Dish last month asked the Washington-based appeals court to rehear the case, saying the court's ruling relied on inaccurate testimony from a TiVo witness. But the court Friday declined to reconsider its decision.

Dish Network said it would file an appeal with the U.S. Supreme Court.

TiVo issued a statement Friday saying it was "extremely pleased" with the court's action.

"Today's ruling brings us closer to resolution of EchoStar's infringement and reconfirms the strength of TiVo's Time Warp patent," the statement said.

Dish Network issued a statement saying the ruling was disappointing, but would not affect its customers because the company had developed and distributed new DVR software that "does not infringe the Tivo patent at issue in the Federal Circuit's ruling."

Dish's shares dropped 81 cents, or 2.6 percent, to $30.82 Friday. Tivo rose 13 cents, or 1.5 percent, to $8.91.