Echostars Loss to Tivo

It did not surprise me when I heard the news that the United States Court of Appeals ruled that Echostar has violated one of Tivos software patents. Tivo needed this win to survive and investors also thought that this victory was good for the company as Tivos shares rose by 30% shortly after the announcement was made.

What does this mean for the millions of Dish Network customers who have one of their DVR’s?  If I had to guess I would say that they would continue to enjoy their DVR’s tomorrow just as they are today.  

I would love to see Echostar work together with Tivo and build a “Super DVR.” Imagine a box that combines all the great features of Tivo, plus the additional features that Echostar has put into its DVR’s and adds in built in Slingbox functionality.  It’s a satellite geeks dream box!

Tivo needs a partner to survive, and Echostar is the perfect partner.  DirecTV has which has licensed Tivo technology has just recently purchased Replay TV which also owns a large amount of its own DVR patents.  DirecTV recently started phasing out DVR’s using Tivo technology in favor of its own in house technology.  

Sure Tivo recently started rolling out its software in some Comcast boxes, however in order to survive they are going to need to expand more then just one MSO.

Remember Echostar is no longer just a supplier of equipment to Dish Network, but they can also make cable converters for cable companies or IPTV providers.  With Echostar being its own separate company now the possibilities of what they can do are endless.

So to both parties (Tivo and Echostar) I say pay the fines, shake hands and maybe even have a group hug.  Take a look at the bigger picture and see what you can do together.  If they work together they can do great things.

It can’t be that hard can it?