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APPEALS COURT STAYS ECHOSTAR INJUNCTION EchoStar customers can keep on TiVoing. The Federal Circuit U.S. Court of Appeals stayed an injunction that had been granted by U.S. District Judge David Folsom in Texas, allowing EchoStar to continue to sell and operate its own digital video recorders while the company appeals an $89.6 million patent infringement verdict. EchoStar showed it had a chance to win and would be harmed if forced to shut down its service during the appeal, according to a three-judge panel. EchoStar “has met its burden of showing that there is a substantial case on the merits and that the harm factors militate in its favor,” Judge William Bryson wrote in a three-page decision. Wednesday’s ruling is a victory for Echostar, which would have been forced to shut down its service to more than 4 million satellite TV customers. In April, a jury found EchoStar had willfully infringed TiVo’s patents on a “multimedia time-warping system” and ordered the company to pay damages to TiVo. On Aug. 21, Folsom issued a permanent injunction against EchoStar and denied the company’s request to stay the injunction pending appeal. Folsom applied the four-factor test recommended by the U.S. Supreme Court’s May ruling in eBay v. MercExchange to determine whether to issue an injunction. He concluded EchoStar’s infringement cannot be remedied by monetary damages alone. TiVo said in a statement that it is confident that the jury verdict will be upheld.

Xenia Kobylarz

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