Dish Network is heading toward two options: shut down DVR service for its customers or license technology from TiVo. Neither one is particularly palatable, so the company filed a lawsuit against TiVo Friday to buy some time. Today, TiVo shares are down 9% to $7.66 as investors freak out about the litigation. Dish shares are pretty much unchanged.
This is a huge deal to Dish because two years ago, the courts told it to stop selling DVRs to customers. (This was after a jury found that Dish's sister company, EchoStar, infringed on TiVo's DVR software). Luckily, Dish got the courts to place that injunction on hold as long as the appeals process was taking place. But the courts refused to hear an appeal earlier this year.
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