[Satellite TODAY Insider 05-03-11] Dish Network and its sister company EchoStar have reached a settlement to pay TiVo Inc. $500 million in a patent lawsuit between the companies, which began in 2005 regarding digital video recorder technology, Dish Network announced in its 2011 first quarter financial results issued May 2.
    Dish Network and EchoStar will provide an initial payment of $300 million with the remaining $200 million distributed in six annual installments between 2012 and 2017. All companies agreed to dismiss pending litigation and dissolve injunctions.
    In a statement, TiVo CEO Tom Rogers said the settlement was a “great resolution” for the TiVo, and that the company might have, “settled for less by reaching a settlement now rather than continuing to battle in court for years to come. But being able to resolve the dispute with certainty will allow us to focus on its other strategies, including building more relationships with media companies and weaving our way into the fabric of the media industry.”
    In a separate statement, Dish Network Chairman and CEO Charlie Ergen said both the pay-TV operator and EchoStar are, “pleased to put this litigation behind us and move forward.”
    The settlement was revealed as part of Dish Network’s first-quarter results, in which the company doubled its net profits to $549 million from $231 million in the same period last year. Dish Network’s revenues increased 5.5 percent to $3.22 billion, which were in line with analysts’ projections. Ergen said the company’s prior-year litigation expenses were supplanted by a $340.7 million credit.
    Dish Network, which recently announced it was shifting its business model to attract customers who are willing to spend more each month on video and less likely to cancel their service, gained a net 58,000 subscribers during the first quarter — the first time the operator has gained customers since the second quarter of 2010. Dish ends the 2011 first quarter with 14.2 million customers.
    Dish Network also took time during its first quarter 2011 results to name Michael Kelly President of its recently acquired movie rental chain subsidiary, Blockbuster Inc.
    Kelly previously served in various executive positions for Dish Network, including management of field service, customer care operations and strategic initiatives after his company Kelly Broadcasting Systems was acquired by Dish in 2000.
    Separately, Dish Network announced that its subsidiary, Dish DBS Corp., plans to raise $1 billion in capital from a debt securities sale. The company said the funding would be used for general corporate purposes.

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