TiVo, Dish Applaud EchoStar Penalty

ALVISO, Calif. (TheStreet) -- TiVo (TIVO Quote) and Dish Networks (DISH Quote) both claim victories in the wake of a $200 million penalty awarded to TiVo.

The U.S. District Court, Eastern District of Texas, ruled against EchoStar (SATS Quote) over the DVR recording technology used by Dish Networks. The fine targeted contempt violations and attorneys' fees, but the amount was well short of the $900 million TiVo had been seeking.

Shares of both companies jumped 6% Friday in the wake of the decision.

TiVo says the ruling validates its claims over infringement on its DVR technology. EchoStar says the ruling was only a partial win for TiVo, and that overall it supported the satellite shop's contention that it acted in good faith in its effort to devise a work-around technology solution for video recording.

EchoStar says it will prevail on appeal. The TiVo legal case started six years ago, and EchoStar has racked up a legal tab of about $400 million as it fights every step of the legal battle.

Earlier this week, TiVo took aim at telco TV providers AT&T (T Quote) and Verizon (VZ Quote) with a lawsuit over its DVR technology.

Written by Scott Moritz in New York.