The Court of Appeals for the Federal Circuit has recently agreed to an en banc review of the litigation between TiVo and Dish Network. TiVo's seemingly endless patent dispute is a perfect illustration of how important an asset IP is to a corporation and the effect that IP litigation can have on a particular market.
For concrete evidence, one need look no further than the fluctuations of TiVo's stock price during their litigation. The news that TiVo had prevailed against Dish network broke on March 2, 2010 and TiVo's stock price closed that day at $10.03. By the closing bell of March 4, 2010, TiVo's stock price had soared to $16.53, an increase of nearly 65%.
Subsequently, TiVo's win was vacated by the appeals court on May 14, 2010. The closing price on May 13, 2010 was $17.39. By the close of May 14, 2010, the price had dropped to $10.16, a decrease of about 42%.
TiVo undoubtedly has a great deal more litigation in its future as well. Microsoft has also recently joined the fray, suing TiVo for infringement in the hope that they can push TiVo into a licensing agreement. Over the coming months, we will be tracking how all of the TiVo litigation plays out and the resulting impact on TiVo's operations.
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