Microsoft (Nasdaq:MSFT) Files Trade Complaint Against TiVo (Nasdaq:TIVO)

With companies looking for new sources of revenue, a growing number have filed complaints or lawsuits against competitors for infringing on their patents, with Microsoft (Nasdaq:MSFT) being the latest, alleging TiVo (Nasdaq:TIVO) infringed on four of their patents.

Canaccord says, "Not to be outdone by Kodak (NYSE:EK), Mr. Softie has filed a trade complaint against TiVo, accusing the television company of infringing four of its patents. The complaint alleges that Microsoft’s Mediaroom software platform, which allows “TV and video service providers to deliver enhanced entertainment content and applications to their subscribers”, and is licensed to companies such as AT&T (NYSE:T), relies on intellectual property violated by TiVo. Specifically, the tech giant complains TiVo's digital video recorder (DVR) technology infringes patents relating to program schedules and selection, user interface controls, and content restrictions based on program ratings. As a result, Microsoft is asking the U.S. International Trade Commission (ITC) to stop TiVo from importing its DVRs into the U.S. “Microsoft seeks an order excluding TiVo’s infringing set-top boxes and associated software and hardware from entry into the United States,” reads the January 24 complaint, “and a cease and desist order or orders halting the domestic sale of infringing, imported set-top boxes and associated software and hardware.” Notwithstanding the merit of Microsoft's claim, analysts say it is unlikely the ITC would award such an injunction. While Microsoft has certainly elevated the issue, it may be jockeying for position rather than looking for a result: discussions between the companies are ongoing, and the two are committed to finding a common solution. “We remain open to resolving this situation through an intellectual property licensing agreement, and we look forward to continued negotiations with TiVo,” said one Microsoft spokesperson."

Microsoft closed Wednesday at $28.78, gaining $0.33, or 1.16 percent. TiVo closed at $9.75, losing $0.12, or 1.24 percent.