Sunday, February 27, 2011

Motorola sues Tivo

So in this case, Motorola is suing Tivo over their DVR patents. DVR stands for digital video recording by the way. This just one of the many cases that has to deal with DVR suits. Tivo has done the same against Dishnetwork and EchoStar which are also big name companies. Let's put it this way, it's all about money to these big companies, their revenue is never enough and so they find as many ways to increase it, suing over patents seems to be the battleground of the tech world. Basically if any of these companies ever do win, their cases it's going to be a big hit in their revenue stream. In actuality its going do more bad then good. Sure one company wins the money and will spend it hopefully, but the other company that loses will most definitely have to make cuts and possibly close down depending on the suit. This will just increase the unemployment rate. Not frictional unemployment but rather cyclical where the demand for let's say Tivo is nearly as high as before and therefore they will have to lay off people. I mean the demand isn't as high because they lost their case for the DVR and will most likely cannot sell that set up box with said DVR, ergo their main revenue stream is gone.

5 comments:

Smith said...

Why are they suing?

Garrett T. said...

Motorola is suing over Tivo and their willful infringement of the patent on the Set-top box that is made by Motorola. The set-top box is the DVR or digital video recording system that they sell to make their main revenue stream.

Alison said...

That's an interesting point about the losing side's unemployment affecting the winning side. I definitely agree with that. I guess the companies are just hoping to make it up in the money that they win.

Ethan said...

How much money is Motorola suing Tivo for? Do you think that one side losing the suit would really cause the other side that much trouble? How many Americans work for Motorola and Tivo and if a big cut came how many do you think would be out of a job?

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