TiVo Ex-CEO Testifies That EchoStar Copied Set-Top Box Technology

TiVo Inc. shared details of its technology with Dish Network, which later used it in its own TiVo-like boxes that can pause and rewind live television programs, a TiVo co-founder said Wednesday.

Former Chief Executive Michael Ramsey made the comment during testimony on the first day of TiVo’s patent-infringement lawsuit against EchoStar Communications Corp., the parent of Dish Network.

Alviso, Calif.-based TiVo has not said how much it is seeking in damages, but an opposing lawyer said the company would ask the jury in federal district court here to award it more than $100 million.

TiVo spent years pursuing a deal in which Dish Network would pay it for using its television set-top boxes, similar to a deal that TiVo has with DirecTV, the other big satellite broadcaster. But Ramsey claimed that the negotiations were “mostly one way” and that Dish Network began selling its own boxes using TiVo technology.

Ramsey was the first witness in a case expected to last two weeks. Analysts say the outcome could affect TiVo stock and determine whether it can pressure cable companies to pay licensing fees for the digital video recorders, or DVRs, that they lease to subscribers.

In an opening statement, EchoStar attorney Harold McElhinny said the Englewood, Colo., satellite provider came up with its own technology that differed from TiVo in several ways. For example, he said, the EchoStar box doesn’t translate analog signals into digital because satellite systems are already digital.

McElhinny said other companies were working on devices that recorded live TV on a hard drive long before TiVo was started in 1997.

“We have 1,500 engineers at EchoStar. We built it ourselves,” McElhinny said. He suggested that TiVo sued EchoStar because it was unable to turn a profit because of tough competition.

McElhinny said TiVo would ask the jury for more than $100 million in damages but that TiVo offered its invention to Dish Network free if Dish helped advertise TiVo.