Rovi Corporation (ROVI) saw its shares take a beating after an appeals court decision went in favor of Amazon.com, Inc. (AMZN). Tuesday's news release shows that the United States Court of Appeals for the Federal Circuit has issued its decision in Rovi’s patent infringement litigation against Amazon. The suit was filed back in 2011 for infringing two patents.
Rovi provides integrated solutions for the discovery and personalization of digital entertainment to service providers and to the consumer electronics industry. Unfortunately for the company, Rovi confirmed that the appeals court sided with Amazon and found that the District Court’s interpretation of the claims of the patents was correct.
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Rovi showed that its patent portfolio includes over 5000 issued patents and pending applications. These range from capabilities related to guidance as well as DVR, video on demand, interactive applications, and multi-screen functionality.
Rovi's statement said,
"We are disappointed by this decision. It should be noted that this decision relates to only two patents in our extensive portfolio. We believe that our portfolio is even more relevant to Amazon today and going-forward than when the present litigation began in early 2011... We plan to continue to pursue Amazon going-forward to take the necessary licenses under our patent portfolio, not only to protect our rights but also the rights of our existing licensees in this space.”
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Shares of Rovi were down over 12% at $20.33 in the final minutes of trading on Tuesday, and its 52-week trading range is $16.00 to $26.55. The 5.8 million shares traded with about ten minutes to go before the close was already almost 5-times the normal trading volume on an average day.