TiVo shared details of its technology with Dish Network, which later used the knowledge to create its own TiVo-like boxes that can pause and rewind live TV programs, a TiVo co-founder testified Wednesday.
Former Chief Executive Michael Ramsay was the first witness on the first day of TiVo's patent-infringement lawsuit against EchoStar Communications Corp., the parent of Dish Network.
Lawyers for EchoStar, however, produced internal TiVo documents that appeared to credit EchoStar with developing its own technology.
TiVo spent years pursuing a deal in which Dish Network would pay it for using its set-top boxes, similar to an agreement that TiVo has with DirecTV, the other big satellite broadcaster. But Ramsay testified that the negotiations were "mostly one way" and that Dish Network began selling its own boxes using TiVo technology.
The trial is 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 that they lease to subscribers.
In an opening statement, EchoStar attorney Harold McElhinny said the satellite provider came up with its own technology that differs from TiVo in several ways.
"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 competition.
McElhinny said that TiVo will ask the jury for more than $100 million in damages but that TiVo offered its invention to Dish Network for free if Dish helped advertise TiVo.
It was no accident that TiVo filed its suit here. The federal courts in East Texas are known for handling patent cases quickly -- a boon to plaintiffs.
Lawyers not part of the case say it will be hard for EchoStar to make its technical-sounding defense to local jurors, who usually favor plaintiffs.
TiVo's patent-infringement lawsuit against EchoSta
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