Tivo (TIVO) stock saw a massive increase this morning peaking right around 7.53 thanks to reports on the injunction imposed against Echostar in the patent infringement case originally filed January 2004.
As reported on this site, the court ordered Echostar to stop sales of competing PVR products that infringed on Tivo's patents. In addition, Echostar was being forced to turn off PVR capabilities on the millions of existing units within the next 30 days.
As the day progressed it was revealed that Echostar won a temporary reprieve allowing the company to continue selling said units until the court can decide whether the injunction should be stayed throughout the entire appeals process. Fortunately for Dish customers, there will not be a mass shut down of PVRs come 30 days, at least yet.
I've got a great idea on how Echostar should accomplish this daunting task when and if it has to be done. All they need to do is send out an army of technicians to disconnect the hard drive cables within the units ala AT&T. That seemed to work really well for them...
Tivo shares closed out the afternoon at 7.02 up 8.17%. The stock was up to 7.13 in aftermarket trading at the time of this posting.
Despite all the drama, Echostar (DISH) shares were only down .92% to 32.45 when the market closed.
