TiVo, Dish Applaud EchoStar Penalty

A Texas court fines EchoStar $200 million over the DVR recording technology used by Dish Networks.
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ALVISO, Calif. (

TheStreet

) --

TiVo

(TIVO) - Get Report

and

Dish Networks

(DISH) - Get Report

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) - Get Report

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) - Get Report

and

Verizon

(VZ) - Get Report

with a lawsuit over its DVR technology.

Written by Scott Moritz in New York.