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TiVo Jumps on CNBC News of Possible Deal, Settlement (Update1)

By Kelly Riddell

Oct. 23 (Bloomberg) -- TiVo Inc., the maker of digital video recorders, rose the most since June after CNBC said a deal or settlement with satellite-television provider Dish Network Corp. may be possible next week.

The stock climbed 9.7 percent after speculation over a deal was raised on the show “Power Lunch.” Mike Boccio, an outside spokesman for TiVo, said the company doesn’t comment on rumors. Kathie Gonzalez, a spokeswoman for Dish, also declined to comment.

TiVo and Dish, along with EchoStar Corp., have sparred in patent lawsuits for more than half a decade over whether Dish and EchoStar copied TiVo’s DVR to make their own devices. Last month, a U.S. District Court judge ordered Dish to pay a total of about $200 million to TiVo in damages for flouting an order that it stop providing DVR service after losing the patent- infringement ruling to TiVo. Dish appealed.

Marc Lumpkin, a spokesman for EchoStar, declined to comment.

TiVo had sought $974.5 million from Dish for contempt of court. Dish and EchoStar told a federal judge in July that the company has acted in good faith and TiVo’s requested sanctions weren’t appropriate, though if they were, $138 million would be a fair total for continuing to infringe a TiVo patent.

EchoStar runs the digital set-top box manufacturing and satellite services businesses that were part of Dish before the Englewood, Colorado-based companies split. Dish trails only DirecTV Group Inc. in U.S. satellite-TV subscribers.

TiVo, based in Alviso, California, gained $1.11 to $12.58 by 4 p.m. New York time on the Nasdaq Stock Market. Dish fell 43 cents, or 2.3 percent, to $18.07. EchoStar dropped 51 cents to $20.42.

The appeal is TiVo v. EchoStar, 2009-1374, U.S. Court of Appeals for the Federal Circuit (Washington). The lower court case is TiVo Inc. v. EchoStar Communications Corp., 04cv01, U.S. District Court, Eastern District of Texas (Marshall).

To contact the reporter on this story: Kelly Riddell in Washington at kriddell1@bloomberg.net

Last Updated: October 23, 2009 16:20 EDT

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