TiVo 2005 Annual Report Download - page 83

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Table of Contents
The following table contains information concerning outstanding stock options for all of the Company's plans as of January 31, 2006:
Number of
Options Outstanding Range of Exercise
Weighted Average
Exercise Prices of
Options
Outstanding
Weighted Average
Remaining
Contractual Life
Number of
Options
Outstanding and
Exercisable
Weighted Average
Exercise Prices of
Options
Outstanding and
Exercisable
639,677 $ 0.13 $ 3.25 $ 2.94 5.39 years 633,895 $ 2.94
2,203,260 $ 3.35 $ 3.78 $ 3.78 9.08 years 435,658 $ 3.77
1,722,822 $ 3.83 $ 4.14 $ 4.01 7.52 years 969,808 $ 3.95
2,408,296 $ 4.17 $ 5.43 $ 5.11 8.10 years 1,003,286 $ 5.09
2,441,135 $ 5.46 $ 6.50 $ 6.29 5.56 years 2,064,383 $ 6.32
2,030,500 $ 6.51 $ 6.52 $ 6.52 9.41 years 251,249 $ 6.52
315,125 $ 6.60 $ 6.74 $ 6.73 8.71 years 270,258 $ 6.73
1,764,316 $ 6.75 $ 7.18 $ 7.15 8.30 years 647,481 $ 7.16
1,678,457 $ 7.25 $ 11.02 $ 9.52 6.71 years 1,226,759 $ 9.45
1,587,000 $ 11.10 $ 37.63 $19.85 4.51 years 1,559,559 $20.00
16,790,588 $ 0.13 $ 37.63 $ 7.16 7.41 years 9,062,336 $ 8.43
13. COMMITMENTS AND CONTINGENCIES
Legal Matters
Intellectual Property Litigation. In September 1999, TiVo received letters from Time Warner, Inc. and Fox Television stating that TiVo's personal
television service exploits these companies' copyrights without the necessary licenses. The Company believes that the TiVo service does not infringe on these
copyrights and believes that there will not be an adverse impact as a result of these letters.
On January 5, 2004, TiVo filed a complaint against EchoStar Communications Corporation in the U.S. District Court for the Eastern District of Texas
alleging willful and deliberate infringement of U.S. Patent No. 6,233,389, entitled "Multimedia Time Warping System." On January 15, 2004, the Company
amended its complaint to add EchoStar DBS Corporation, EchoStar Technologies Corporation, and Echosphere Limited Liability Corporation as additional
defendants. The Company alleges that it is the owner of this patent, and further alleges that the defendants have willfully and deliberately infringed this patent
by making, selling, offering to sell and/or selling digital video recording devices, digital video recording device software, and/or personal television services
in the United States. On March 9, 2005, the Court denied motions to dismiss and transfer the Company's patent infringement case against EchoStar
Communications Corporation and its affiliates. On August 18, 2005, the Court issued a claim construction order. On April 13, 2006, the jury rendered a
verdict in favor of the Company in the amount of approximately $74.0 million dollars. The jury ruled that the Company's patent is valid and that all nine of
the asserted claims in the Company's patent are infringed by each of the accused EchoStar products. The jury also ruled that the defendants' willfully infringed
the patent. The Company plans to seek an enhancement of damages for willfulness, prejudgment interest, attorney's fees and costs, and an injunction against
the defendants' further infringement of the patent. The defendants' claim of inequitable conduct against the Company remains pending. The Company is
incurring material expenses in this litigation.
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