Tivo and SonicBlue Settle Dispute
Shippy writes "According to this article at the Stereophile Guide to Home Theatre, Tivo and SonicBlue have
decided to dismiss all patent-infringement claims 'without prejudice' and instead focus their energies on energizing the DVR market. 'We believe our energies are better spent expanding the market for DVRs rather than fighting each other,' the former adversaries said in a joint statement. The article also discusses their plans for marketing and also how they plan to respond to criticisms that the DVR market is doomed."
Everyone I know who owns a PVR (including me) says the same two things:
-1) I love it and will never, ever give it up.
-2) It's nearly impossible to explain why I feel this way to anyone who doesn't own a PVR themselves.
IMO, #2 is the principal difficulty for SonicBlue and Tivo.
-Cal
Because neither company can afford lawyers!
"...they plan to respond to criticisms that the DVR market is doomed."
Time Warner doesn't think it's doomed. They just launched the Explorer 8000 Digital Video Recorder here in Austin, TX.Warning! Keep Out of Eyes! Wash Out with Water! Don't Drink Soap! Dilute! Dilute!
Totally! I mean, what market only has one option? There's room for PLENTY of competitors. Look at the rest of the consumer electronics market: Sony, JVC, Panasonic, Mitsubishi, Toshiba... Competition is good.
When I bought my ReplayTV, my friends were all telling me "You should have gotten a Tivo. Tivo will win." Neither will "win". They'll both do just fine for as long as they can. I happened to like the Replay user interface better, so I got it.
In this case, since the whole DVR industry is under fire from the MPAA, and other like-minded nimrods, its a good idea for them to not fight with each other. I mean, what good will it do them to bankrupt the other on some patent if the whole industry gets shut down in the meantime.
blog
SonicBlue: U STOLE ARE TECHNOLOGEY!!!1!!! Tivo: FUK U!! SonicBlue: OMG WE CULD CONBINE ARE SKILLZ AND BE ElITE! Tivo: OMG!!!! YES!!11!!!!!!!!
OK.
Lets look at the last financial statements for TiVo inc. Quarter to July 31, 2002.
Sales $23.9m, up about 6x. (Yep, c. 600%)
Gross profit $16.3m
Less R&D ($4.5m), Sales & Marketing ($5.6m & 3.4m), and General & Administrative ($1.1m).
Operating loss for the quarter, $1.1m, against $34.5m a year ago.
TiVo doomed? Do the math.
--- My dad's political betting