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Updated from 4:40 p.m.


(TIVO) - Get TiVo Corp. Report

fell 6% late Tuesday after a federal appeals court setback in an ongoing patent dispute.

The company said U.S. Court of Appeals for the Federal Circuit granted the request of satellite broadcaster


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to stay an injunction against the sale of EchoStar's video recording devices.

TiVo shares rose 14% back on Aug. 18, a day after a federal judge issued the injunction against EchoStar. The judge ruled for the digital recording company and halted sales of certain EchoStar digital-video recorders. The court also assessed the satellite broadcaster $89.6 million in damages.

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On Tuesday, TiVo said, "We are confident that the jury's decision in TiVo's favor will be upheld once the Federal Circuit has the opportunity to review the entire record in this case. It is important to note that most injunctions in patent cases are stayed pending appeal, and the appeal itself will be decided on a totally different standard of review."

TiVo also said it paid an undisclosed amount of cash to get a royalty-free patent cross-license with


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Alviso, Calif.-based digital recording outfit made the disclosure in a regulatory filing late Tuesday.

TiVo said it and IBM reached the deal on Sept. 28. TiVo's license to Armonk, N.Y.-based IBM "extends to all products other than digital media recorders and digital media recorder software," TiVo said.

"Each party granted to the other a non-exclusive, worldwide, royalty-free license to such party's patents that are entitled to a priority date on or before September 28, 2006, including all patents and patent applications in existence as of that date with limited exceptions," TiVo said. "The license granted by IBM to us extends to all products other than general purpose data processing products and data storage devices that are primarily sold separately from other hardware."

Shares fell 44 cents to $7.08.