TiVo Relaunching As a Patent Troll?
An anonymous reader writes "TiVo's quarterly call was a bit more dramatic than usual. While they continue to lose customers and innovate 'at a very unhurried pace,' TiVo seeks a repeat DISH Network performance in going after AT&T (T) and Verizon (VZ) for infringement. Basically, TiVo's current business model appears to be ad sales and patent trolling."
It's not like TiVo is a company set up to collect patents and then chase them down. They've had products on the market for years, would by many be said to have created the home digital recorder (and thus have attained many patents), still have products on the market, and other providers have created products that are now losing TiVo business.
So if the patent is valid (I haven't read it) then surely TiVo have as much right to go after infringers as any other company that has its patents on its products infringed?
It's not trolling if your patent truly covers an innovation, and your competitors copy it. In this case it's called "protecting your rights".
So this should be tagged "!troll" "badsummary" and "bitterposter" because I'm not entirely sure that this summary does it any justice. First, TiVo is not a troll for at least the reason that they actual manufacture products embodying the patent, have done so for a long time, and actually have revenue related to both hardware and subscription fees. [citation needed ;)].
Second, together with ReplayTV (now Motorola?), TiVo really was an innovator in this space. Whether these particular patents were innovative was at least decided with respect to DishNetwork. AT&T and Verizon will now get their chance to try to invalidate it. Who knows, maybe they have some damn good art.
I think TIVO is using the patent system exactly as it was intended. They invented something unique and successfully marketed it, but then various cable and satellite companies decided to not (or to stop) paying the licensing fees and create similar devices. Let's face it, the cable companies aren't all that inovative on their own and they probably wouldn't have come up with the idea for a DVR w/o seeing TIVOs.
Putting the "anal" back into "analyst"...
It's probably a better business model than
1. Spend lots of money to invent the mousetrap
2. Spend more money to make it better
3. Allow cable/satellite to build 80% of your ideas into their own equipment and cut you out of any revenues
4. Profit
So close and yet so far from the world's perfect ID number
Every time I've set up new cable service, I try the local carrier's DVR flavor... and so far, I have always gone back to TiVo. TiVo actually DOES have a nice product with several innovative features. Protecting one's patent does NOT make one a troll: it makes one a patent holder. The original poster seems to think all patents should be abolished (which would kinda suck for encouraging some innovations).
I know people are keen to brand anyone who files patent infringement lawsuits as a patent troll but a real patent troll owns patents but makes nothing - their line of business is to buy patents and sue companies. TiVo actually produces something. They have products and offer something to customers. They are simply enforcing their patents. You are welcome to question the validity of their patents; you are welcome to question the wisdom in starting patent wars with other major companies but, let's keep our discussion real - they are not patent trolls.
Why would anyone bother buying a tivo when they can just get it right with their cable bill?
Because the cable company charges usurious rates and extra fees for a DVR with a crap interface that's littered with bugs? The only thing stopping me from switching to Tivo currently is on demand. You have to keep a box from the cable company for that to work, since cable card does not support it, and they charge you for it.
I'm a long-term TiVo user, but this story reminds me of my simmering frustration with TiVo. Years ago I used a Hauppauge card, and their interface had innovations that TiVo still hasn't picked up on, like a vastly superior conflicts-resolution system. Is there a decent alternative to TiVo, with a better interface? Cable-company solutions are generally poor, as I understand it, and I frankly don't have time to roll my own Myth system. (I would consider an out-of-the-box Myth product, though.) I'd appreciate informed recommendations.
.... you can sit on your ass, hire some lawyers, and soak up millions via your government granted monopoly.
That's what the cable companies do.
Or you can roll up your sleeves and work your ass off innovating, servicing customers, and building up a customer base
That's what TiVO did.
Sadly, it looks like they're quickly going out of business. The government should have mandated a universal standard for Satellite and Cable boxes so that TiVO (and any other manufacturer) could easily interface. Instead, we have a slapdash mix of ever-changing technologies like ATSC, QAM, SDV, etc and it's very difficult to design to a moving target (as anyone who has attempted to use a TiVO with CableCard knows).
(-1, Raw and Uncut is the only way to read)
Technology was not being developed because the people with the power did not want it ruining their business. (i.e. TV and cable/satelite tv execs)
Finally, innovative customers risked their own hard earned cash and developed the technology.
It immediately became a huge success. A new word was formed - to tivo it.
Finally the cable execs realized that they were losing business so they used their installed monopoly on black boxes to take over the business. They tried hard to ignore the copyrighted new word and replace it with "dvr it". Too bad dvr has no vowel.
The innovator that created the business could not compete with the installed monopoly base of black boxes. They tried to pass laws to let them sell the black boxes, but the cable companies effectively weakened those laws. They got destroyed not because they did not have a superior product but simply because of the monopoly factors (i.e. I can buy a Tivo but I still have to pay the cable company to rent a cable box - why pay twice?)
This is why patents exist - to protect the profits of the inventors that actually took the risks and created the product from the slimy large businesses that come in after the product is created and steal customers away.
excitingthingstodo.blogspot.com
BUT, other companies are still pedaling their hardware that infringes on Tivo's (still valid) hardware patents. Tivo enabled certain things that everyone was chasing after for years. should they be able to profit by copying? this is what the patent system was supposed to do, reward innovators with a temporary monopoly, and grant legal leverage to support that temporary monopoly.
this is the patent system working as it should, for hardware inventions that have been reduced to practice.
So why are they a patent "troll"? It's not like they're claiming some dubious invention as their own or claiming minor modifications are innovations. They invented the DVR and made it easy to use, along with ReplayTV. They created the market. As other copycats whittle away at the patents and see much they get away with, it's only natural for Tivo to try to hold on. The article basically sounds like someone with a gripe against Tivo which is never articulated.