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brinksmanship

TiVo, Microsoft Embroiled In Dueling Lawsuits

Posted by Sara Zucker on January 21, 2010 11:17 AM

Call it a series of tit-for-tat lawsuits.

First, TiVo sued AT&T and Verizon over technologies used in DVR delivery and purchasing systems. Nothing new there considering disputes and lawsuits are common in the world of developing technologies. However, the storyline here takes an interesting turn as AT&T has some powerful allies. Enter Microsoft.

Microsoft is launching its own attack against TiVo, accusing the brand of some rather harsh allegations involving patent infringement. The claims state that the digital video recording company has inappropriately used video and programming display technology -- specifically, it unlawfully applied features from Mediaroom, a Microsoft-created system.

But TiVo isn't budging.

In its defense, TiVo released this statement:

"Microsoft's recent legal actions, including its decision to seek to intervene on behalf of its customer, AT&T, and its recent complaint against TiVo... do not bear on whether the AT&T products and services that are the subject of TiVo's complaint infringe the patents asserted by TiVo."

As Microsoft's largest and most significant client regarding Internet video use, AT&T requested that it help settle the issue as a sign of solidarity. Continuing the controversy, the larger companies affiliated with AT&T and Microsoft can conceivably coerce a settlement out of the smaller TiVo by banning together.

If TiVo is able to overcome these threats, however, it would gain enough clout to possibly leverage partnerships with other companies such as Dish and Echostar. Should the brand fail, an extended courtroom battle would be sure to ensue.

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