TiVo claims most DVRs use its technology

TiVo is so well known as the pioneer of digital video recorders that many people mistakenly call any DVR a "TiVo." But if the company has its way, that perception may soon have the support of law, which could dramatically reshape the TV business. In a patent infringement case coming to a head against Dish Network — as well as cases filed last week against Verizon and AT&T — TiVo says that it owns the technology behind processes found in almost every DVR. That includes a function called the "time warp" that controls everything from fast-forward and rewind to the ability to view the beginning of a TV show as the DVR records the ending. Competitors "are pushing (DVR) technology as a competitive differentiator to grab customers," says Matthew Zinn, TiVo's general counsel. "That irreparably harms TiVo, because those customers tend not to switch providers." TiVo has a lot riding on the outcome. It has watched its subscriptions fall 31% since the beginning of 2007, to 3.1 million, as cable and satellite companies marketed less expensive DVRs. If it wins its patent cases, "there's a high probability that (anyone offering a DVR) will have to pay TiVo licensing fees," says Lazard Capital Markets analyst Barton Crockett.