Satellite TV and video-on-demand company DISH Network this morning announced today that Joseph P. Clayton has been named the company’s president and chief executive officer and has been appointed to its board of directors, effective June 20, 2011. The company’s iconic co-founder, Charles Ergen, will step down from his operational role at the helm of the company but remain as chairman of DISH Network.

Clayton previously served as chairman of Sirius Satellite Radio, from November 2004 through July 2008, and served as CEO of Sirius from November 2001 through November 2004.

Prior to joining Sirius, Clayton served as president of Global Crossing North America and as president and CEO of Frontier Corporation.

For your further reading pleasure:

DISH And EchoStar Settle Patent Litigation With TiVo, Agree To Pay $500 Million

DISH Wins Bankruptcy Auction, Buys Blockbuster Assets For $228M In Cash

DISH Network and EchoStar this morning announced that they’ve agreed to pay TiVo $500 million to settle all of their ongoing patent litigation with the digital video recorder company.

Under the terms of the settlement agreement, DISH and EchoStar will initially cough up $300 million, with the remaining $200 million distributed in six equal annual payments between 2012 and 2017.

The companies have agreed to dismiss all pending litigation with prejudice, and to dissolve all injunctions against DISH and EchoStar.

In addition, TiVo granted DISH a license under its Time Warp patent and certain related patents, for their remaining lives. Time Warp is technology that essentially allows users to record one TV program while watching another.

TiVo says it will also play a role in helping DISH Network promote the Blockbuster digital video service (DISH just acquired substantially all of the assets of Blockbuster, which went belly up in September 2010, for roughly $228 million in cash).

TiVo also granted EchoStar a life-long license under the same patents, to design and make certain DVR-enabled products solely for DISH Network and two international customers.

EchoStar, in turn, granted TiVo a license under certain DVR-related patents for TiVo-branded products.

TiVo originally sued DISH and EchoStar back in 2004 over its patented DVR technology back when the two were still a single company. They won the suit, but the court decided in May 2010 to reconsider its verdict. Two weeks ago, a federal appeals court then moved to uphold the ruling that EchoStar infringed TiVo patents, which ultimately led to today’s announcement. TiVo will hold a conference call at 9:00 AM ET today to discuss the agreement.

In related news, DISH Network this morning reported its first quarter 2011 financial results (net income of $549 million on revenues of $3.22 billion) and announced that Michael Kelly has been named president of its new subsidiary Blockbuster.

EchoStar also announced quarterly earnings this morning: net income of $17 million on revenues of $480 million.

via USAToday

DISH Network this morning announced that it was selected as the winning bidder in the bankruptcy court auction for substantially all of the assets of Blockbuster, which went belly up in September 2010.

DISH’s winning bid was valued at approximately $320 million, but after adjustments for available cash and inventory and others, the company expects to end up paying approximately $228 million in cash to acquire Blockbuster.

Yesterday, DISH Network’s bid was worth $307.1 million (or $308.1 million, depending the source).

Other bidders included billionaire Carl Icahn, a major Blockbuster shareholder and bondholder, and a consortium of existing Blockbuster lenders led by Monarch Alternative Capital. South Korea’s SK Telecom was also a bidder but dropped out earlier.

A sale-approval hearing is scheduled for Thursday.

DISH says the transaction is expected to close in the second quarter of 2011, although its completion is contingent upon satisfaction of certain conditions, including bankruptcy court approval.

Here’s how Tom Cullen, EVP of Sales, Marketing and Programming for DISH Network, pitches the deal:

“With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network.

While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster’s brand as a leader in video entertainment.”

Established in 1998, DISH currently serves more than 14.1 million satellite TV customers.

At this week’s Google I/O Conference, the company carefully articulated its vision of the world. There’s Apple in one corner, carefully controlling its ecosystem, rejecting Flash, and conjuring images of an Orwellian Big Brother. As the “one man, one company, one device” (Vic Gundotra’s words) becomes more powerful, Google is trying to posit itself as the other choice. The more “open” choice. Whether or not you agree with Google’s goggles, it’s a very smart and well defined message, creating an us vs. them environment and reinforcing the mantra “Don’t be evil.”

This point of “openness” was driven home on Thursday, during the I/O keynote, when Gundotra and Co. unveiled the highly anticipated Google TV project. Unexpectedly (and to great effect), Schmidt took to the stage at the end to introduce Google TV partners, a panel of high power CEOs (Best Buy, Sony, Intel, Dish Network, Logitech, Adobe). Together, those companies represent a market capitalization of roughly $200 billion ($350 B when you add Google).  Their attendance wasn’t really necessary— there was plenty of flash in the presentation (no pun intended)— but it punctuated Google’s message: Google is open, inclusive and powerful and we are definitely not an army of one. Let’s just say, I don’t think it was a coincidence that Adobe’s CEO Shantanu Narayen was seated next to Schmidt.

Obviously, not every Google TV partner relishes the product’s rivalry with Apple TV, or the larger Google vs. Apple battle. Some of the CEOs seem simply convinced that Google TV will revolutionize the way consumers define “TV” and are excited by what it could mean for their bottom line. Regardles, here’s a closer look at the Google TV team and how it operates.

Sony will produce “Sony Internet TVs” and a set top box with a Blu-ray Disc drive. These products will have Google software and Intel technology built-in. The Sony Internet TV is part of the company’s new “Evolving TV” line— internet TVs that can “evolve” with new downloadable applications. This initiative could be the first of many Google-friendly Sony products, the company says they are looking into creating other Android-based “products for the home, mobile and personal product categories.” Release: USA Fall 2010.

Sony and Apple have been rivals for several years (i.e. Connect music store, e-reader, Vaio laptops). The company hopes to compete more aggressively against the iPad maker this year, with plans to expand its online media platform and mobile product line. CEO Howard Stringer sees open technology (like Google TV) as key to its success, in an interview with Nikkei Electronics Asia, he said “If we had gone with open technology from the start, I think we probably would have beaten Apple” (in music). (For more on Stringer, see our quick interview with Sony’s chief. Above.)

Adobe- Google TV will use the Android 2.1 operating system, Chrome browser, and yes, Flash 10.1 (which will be integrated into the Chrome browser). “Flash Player 10.1 will support hardware-accelerated video playback and deliver smooth, HD (1080p) quality video on Google TV devices,” Adobe’s Aditya Bansod said on the company’s official blog. Google TV provides the technical capability to run flash on sites, but it is up to the site to determine whether to enable content.

Adobe’s incentive to work with Google is clear. If you’ve been living in a hole for the last year, try this, or this, or this, or this.

Logitech will make set-top boxes, for user who want to use Google TV with other televisions. The Logitech’s set-top boxes will connect  your TV through an HDMI port and a controller (which includes keyboard capabilities). According to reports, it will include 4 GB memory and Dolby 5.1 surround sound. “We’ll be making a variety of options available right away, including video calling and a variety of controllers – even a Logitech smart-phone app — and even more stuff we can’t talk about,” Logitech says on its site. To make the product work, you’ll need a TV with an HDMI input and a broadband internet connection. And “To take full advantage of the content search, you’ll need a satellite or cable set-top box with an HDMI output as well,” according to Logitech. At some point down the line, Logitech also plans to roll out a companion HDTV camera to enable video chat. Release: USA Fall 2010.

DISH Networks – According to DISH and Google TV, the DISH subscription will provide the most optimized experience for Google TV (in regards to content management). Some of the features on the Google TV home screen can only be unlocked with DISH. “Only DISH Network Google TV customers will be able to enjoy a unified search across TV, DVR and web; easily find related content; and manage their entire TV viewing experience,” Dish Network CEO Charlie Ergen said in a release. Release: USA Fall 2010, prices not yet announced.
DISH and Google have been working on this project for quite awhile. More than a year ago, the companies launched a beta trial with some 400 DISH subscribers.

Intel’s Atom CE4100 processor will be used in the Logitech and Sony products, to power Google TV. The chip promises “home theater quality A/V performance.”
Intel’s relationship with Apple is a bit complicated. Intel has been a major chip provider but the relationship has cooled somewhat, amid reports that Apple is flirting with rival AMD for future products. Apple seems to be slowly moving away from Intel (for example, introducing its own chip in the iPad), giving Intel extra reason to build on its relationship with Google.

Best Buy is the first, exclusive retailer for Google-TV devices in 2010. The Sony and Logitech devices will be available at Best Buy, starting in fall 2010.

A federal appeals court stated today that it will revisit a digital-video recorder patent dispute between TiVo and both Dish Network and EchoStar. TiVo has sued the companies back in 2004 over its patented DVR technology back when the two were still a single company.

They won the suit, but the court has now decided to reconsider its verdict, which is a bit of a cold shower for the company.

Today’s decision pushed TiVo shares down as much as 36 38 percent.

The company moments ago released a statement on the matter:

“We are disappointed that we do not yet have finality in this case despite years of litigation but we remain confident that the Federal Circuit’s ruling in our favor will be reaffirmed after all of the judges on the Federal Circuit have had the opportunity to review the merits of this case.”

Update: and here’s the Dish / EchoStar statement:

“DISH Network and EchoStar are pleased that the full Federal Circuit Court of Appeals has granted their petition for rehearing en banc. We believe the issues that will be considered by the full court on rehearing will have a profound impact on innovation in the United States for years to come.”

In March 2010, a panel of the U.S. Circuit Court of Appeals upheld a trial judge’s decision to hold Dish and EchoStar in contempt for infringing on TiVo’s DVR patent. The companies then urged the court to reconsider, and the appeals court has granted said request earlier this morning. The court said it will take a second look at its March finding.

More details on BusinessWeek.

The market is busy beating TiVo with a stick – let’s see how long that continues.

The new ruling brings Dish and EchoStar’s total payments to TiVo to around $400 million in damages and other fees after a five year legal battle. In this latest round, Dish and EchoStar say they tried to work around TiVo’s patents, but a judge ruled that they had failed to do so. The $200 million figure is based on a $2.25 per month royalty for every Dish DVR user, extending from April 2008, when an appeals court reaffirmed TiVo’s patent, to July 1 2009.

It could have been worse. TiVo was looking for nearly $1 billion — or all of Dish’s DVR profits — as it accused Dish and EchoStar of willingly infringing on its patent. The judge ruled that the infringement had been unwilling (in other words, the companies had tried to work around the patent but failed to do so), hence the smaller penalty.

None of this bodes well for AT&T and Verizon, who are also being sued by Tivo for infringing on its “Time Warping” patent.

Instead of disabling the DVRs, EchoStar uploaded a new OS onto them, which, according to this judge, isn’t what they were ordered to do. The company had an option to modify the original judgement to include that option, but they didn’t file for the change. Now EchoStar was ordered to pay TiVo $103 million. That figure could reach $190 million once interest is tacked on. Well, if you can’t pay, don’t play.

Where are all these people going? It seems that almost every provider has recorded a decline in subscriptions so are more people utilizing free digital signals for their TV addiction? The picture is better than anything cable or satellite can provide, but what do people do without hundreds of stations they never watch?

Picture your flat’s sink full of nasty dishes. Ok, maybe not nasty nasty, but you know, dingy. Then all you do is fill up the sink with water and drop this little guy in. Press the indicator light to have your new roommate wash everything submerged with ultrasonic tech. 

Who knows if this concept will ever make it out of CG-world and into my sink. If it helps though, I can provide an extensive list of guys willing to sell a lot of blood to fund such a device. It’s just so hard getting the dishes from the sink into the built-in dishwasher.

Tuvie via Cooking Gadgets

DISH announced today a net loss of 25,000 customers. The company blamed the loss of subscribers on a combination of economic factors and stiffening competition. Wall Street reacted unfavorably, sending the shares down in early trading. The stock price made up lost ground as the day went on.

Craig Moffett, analyst at Bernstein Research, said:

This is not pretty. It’s the first ever loss of subscribers by a major satellite TV company.

In spite of the shrinking customer base, DISH managed to beat Wall Street expectations with higher than expected second quarter profits.

Tomorrow, DISH will start rolling out a big, fat update to all of its MPEG-4 HD DVR boxes. The update will allow the boxes to display high definition content in glorious 1080p resolution. Says DISH, “By early August, all DISH Network customers with MPEG-4 HD DVR receivers will have the only set-top boxes in the nation enabled to display 1080p content, allowing them to maximize the full potential of their 1080p-compatible HDTV sets.” So if you’re really into HD, this might get you a little boner-y.

The update is set to dovetail with DISH’s TurboHD service, which is an “all-HD suite of programming packages” and the recent launch of the company’s Echo XI satellite. DISH currently offers 114 national HD channels and plans to have 150 by year’s end.

Here’s the full press release:

DISH Network(R) Unveils Biggest High Definition Upgrade in TV History

ENGLEWOOD, Colo., July 31, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — DISH Network Corporation (Nasdaq: DISH) today set the bar for the next-generation HD standard by becoming the first in the industry to offer high definition programming in 1080p, the highest and best HD resolution available.

This new functionality is part of DISH Network’s latest and unprecedented expansion in high definition services, which includes the rollout of TurboHD, the industry’s first 100 percent, all-HD suite of programming packages. As previously announced, DISH Network will also launch 17 new national HD channels tomorrow, surpassing its goal of reaching 100 national HD channels five months ahead of schedule. DISH Network now offers up to 114 national HD channels and plans to expand that line-up to 150 channels by the end of 2008, made possible by the recent launch of Echo XI, the most powerful satellite in the company’s fleet.

"Over the years, DISH Network has maintained a very competitive high definition offering in the marketplace, providing customers with a premium HD product including the best technology, signal and experience — at the best value — that no other pay-TV provider can come close to matching. Our latest system upgrade coupled with the introduction of TurboHD further strengthens our position as the leader in digital television and high definition television," said Charlie Ergen, Chairman, CEO and President of DISH Network. "We know that once consumers start watching their favorite TV shows in high definition, their viewing habits change and their preference switches to all-HD programming. Only DISH Network gives them that option, all for an industry-low price of $24.99 per month."

DISH Network’s new high definition services are supported by a proprietary system upgrade that, starting August 1, is being rolled out to all MPEG-4 HD DVR receivers. The upgrade activates a unique feature of the set-top boxes, improving the current standard of HD delivery used by pay-TV providers such as the ability to output 1080p programming. By early August, all DISH Network customers with MPEG-4 HD DVR receivers will have the only set-top boxes in the nation enabled to display 1080p content, allowing them to maximize the full potential of their 1080p-compatible HDTV sets.

To celebrate this new era in the high definition viewing experience, DISH Network is offering subscribers a special deal in August to enjoy the unparalleled picture and sound of 1080p high definition programming. Starting August 1, Warner Bros. Pictures’ blockbuster "I Am Legend" starring Will Smith will be available in 1080p resolution — same as Blu-ray(R) Disc quality — on DISH Network’s VOD service, DISH On Demand, at a discounted price. Subscribers with MPEG-4 HD DVRs may order the movie on DISH Network Channel 501.

Consumers can sign up for the best high definition programming and service in the industry with DISH Network’s new TurboHD programming packages, the only all-HD packages on the market, starting at $24.99 per month. TurboHD is available in three separate tiers and includes special "turbo-charged" features and benefits such as DISH Network’s award-winning and industry-leading technology, the highest quality HD available including 1080p where applicable, and the most-watched HD channels that may be viewed on any TV — analog, digital or high definition.

Current DISH Network customers looking to add the industry’s best high definition experience can get a "turbo-charged" HD package for as little as $10 more per month.

The latest national HD channels added to DISH Network’s programming line-up are: ActionMax HD (DISH Network Ch. 313), CBS College Sports HD (Ch. 152), Lifetime HD (Ch. 108), Lifetime Movie Network HD (Ch. 109), Planet Green HD (Ch. 194), Encore HD (Ch. 340), HBO 2 HD (Ch. 301), HBO Comedy HD (Ch. 307), HBO Family HD (Ch. 305), HBO Latino HD (Ch. 309), HBO Signature HD (Ch. 302), HBO West HD (Ch. 303), HBO Zone HD (Ch. 308), Starz Comedy HD (Ch. 354), Starz Edge HD (Ch. 352), Starz Kids & Family HD (Ch. 356), and Starz West HD (Ch. 351).

For more information about DISH Network’s 1080p programming, new HD channels and TurboHD system and packages, visit http://www.dishnetwork.com or call 1-800-333-DISH (3474).

[via I4U]

In 2004 Tivo successfully sued EchoStar for its Dish Network DVR, which provided very similar functionality to Tivo’s product. EchoStar was ordered to pay Tivo $73.9M in damages. The company has subsequently appealed the ruling a number of times, but has not been successful in getting it overturned.

The Dish Network has advised customers that the latest rulings will have no effect on their DVR service, stating that they have deployed “next-generation DVR software” that will not infringe on Tivo’s patent. The company has also declared that it intends to appeal the latest ruling all the way to the U.S. Supreme Court. Dish has a lot more lawyer money than TiVo, and it is going to drag this thing out as long as it can.

Thomas Hawk’s Digital Connection was the first site to report the news.

You also might be seeing even more ads if Sling Media puts into play the technology described in a recent patent.

The patent basically entails using various methods of delivering ads including video overlays, pre- and post-roll ads, pop-up windows, and even serving ads to you via “a phone call, a fax, or the postal service.” The ads would be targeted to you based on what you’re watching at the time, so you’d get ads for golfing websites while you’re watching a golf tournament, for instance.

It should be noted that Sling Media hasn’t announced any plans to use the service yet. I’d hope that the company would be smart enough to realize that people who are paying for a SlingBox and then, in some instances, paying again for the SlingPlayer  software (SlingPlayer Mobile costs $29.99) might be a little miffed to see ads showing up.

It would make more sense for Sling Media to use this technology to supplement the cost of the hardware player and/or software packages or at least offer it as an opt-in “service” to Slingbox owners. And it might not affect Slingbox owners at all. It may be something that Sling Media uses for the new partnership with EchoStar/DISH Network to offset the costs of building the technology into DISH receivers.

Slingbox to Slip Ads Into TV Viewing? [Sling Community]