EchoStar for use of TiVo's 'time warp' digital video recording technology;

court sustains TiVo's claims of validity and infringement

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Law firm Irell & Manella LLP represented TiVo in both the original trial and the appeal, and was joined on appeal by members of the Washington office of Wilmer Cutler Pickering Hale and Doer LLP and Ropes & Gray LLP.

In a unanimous ruling written by Judge William Bryson, the three-judge panel affirmed an April 13, 2006 jury verdict in Marshall, Texas that EchoStar had willfully infringed TiVo's patent on its innovative "time-warp" technology for digital video recorders (known as DVRs). The appellate decision also upheld all damages claims against EchoStar, as well as a key injunction preventing EchoStar from using TiVo's technology.

The appellate court also sent the case back to the district court to decide additional damages for the period the injunction was stayed pending appeal.

The court overturned a finding of infringement by the hardware used by EchoStar, which will have no practical effect on damages or the overall outcome.

The decision validates TiVo's market-leading position as the first company to successfully and market a low-cost DVR product that allows consumers to pause, rewind, and fast-forward a live television program.

"This is gratifying for TiVo," said Morgan Chu, the Irell lawyer who led TiVo's trial team. "The courts have recognized that TiVo was the creator of a revolutionary technology, one that reshaped the entire home entertainment industry. The court's strong affirmation of the patents will be a great boost to TiVo as it looks to continue to break new ground in creating marketing leading advancements."

Irell has been representing Alviso-based TiVo since January 2000, when the market leader first came under attack from companies looking to profit from the DVR craze. The firm successfully defended TiVo in separate actions by both Gemstar and Pause Technology.

The 2006 trial in Marshall, Texas involved extensive testimony about complex technology and patent issues, though the jurors needed barely two hours of deliberations to reach a unanimous verdict.

TiVo was represented at trial by Irell attorneys Morgan Chu, Christine Byrd, Perry Goldberg, Ben Yorks, Andrei Iancu, Laura Brill, and Alexander Giza.

Note: Irell & Manella LLP is a full service law firm with approximately 200 attorneys in offices in Los Angeles and Newport Beach, CA. Founded in 1941, Irell is nationally recognized for its tax, entertainment, intellectual property, corporate and litigation practices. Irell was named the Number 1 U.S. law firm for intellectual property by Chambers Global in 2005 and 2006. The firm's clients include Fortune 500 corporations, universities, and leading-edge entrepreneurial companies in aviation, life sciences and medical devices, telecommunications, gaming, finance, technology and consumer electronics, and entertainment. For more, visit www.irell.com.