Flush with the cash from the litigation win over Dish Network, TIVO’s earnings results have surprised Wall Street. CEO Tom Rogers has publicly stated protecting TIVO patents is a key strategic objective. In fact, part of the explanation for the loss reported in the third quarter is legal costs, as TIVO adjusts its sites on two more alleged infringers: AT&T and Verizon.
Here’s the key question: TIVO’s business model is subscriptions. TIVO’s ultimate success must include a massive updraft in the number of subscribers. How does the patent protection strategy integrate with the need for subscriber growth? Is protecting IP enough? NineSigma’s open innovation blog gets to the heart of the issue. “It’s important to understand the nuance between protecting IP and managing it.”