ALVISO, Calif. (AFX) - Digital television recording service provider TiVo Inc. said Tuesday an appellate court granted EchoStar a stay on an injunction that would have forced EchoStar to stop selling digital video recorders and to turn off machines already in customers' homes.
TiVo sued EchoStar, the Englewood, Colo., satellite TV service provider, in January 2004, alleging that EchoStar and certain subsidiaries violated a TiVo patent related to the storage and playback of television. A jury ruled in April that EchoStar infringed on Tivo's patented TV-viewing technology in making set-top boxes for its customers.
In August, the federal district court judge who presided over the jury trial issued the injunction against EchoStar.
'We are confident that the jury's decision in TiVo's favor will be upheld once the Federal Circuit has the opportunity to review the entire record in this case. It is important to note that most injunctions in patent cases are stayed pending appeal, and the appeal itself will be decided on a totally different standard of review,' TiVo said in an official statement.
An EchoStar spokeswoman wasn't immediately available to comment.
TiVo shares traded at $7 in the after-hours session, down 52 cents, or 6.9 percent, from Tuesday's closing price, while shares of EchoStar were trading at $32.10 in the extended session, up 3 cents from Tuesday's close of $32.07 on the Nasdaq.
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