stumbled Wednesday after
a federal appeals court setback late Tuesday in an ongoing patent dispute.
The Alviso, Calif.-based company said U.S. Court of Appeals for the Federal Circuit granted the request of satellite broadcaster
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. 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."
TiVo also said it paid an undisclosed amount of cash to get a royalty-free patent cross-license with
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 shares were recently down 71 cents, or 9.4%, to $6.81. Bear Stearns downgraded its recommendation on the shares to underperform from peer perform.