Shares of TiVo Corp. were up more than 10% early on Tuesday after winning a patent case against Comcast Corp. . The administrative law judge in TiVo's International Trade Commission case issued an initial ruling regarding two of TiVo's patents relating to set-top boxes, finding that Comcast had violated section 337, which involves imports. A final ruling is expected Sept. 26. following a full investigation into the infringement. If the ruling doesn't change after that, certain Comcast set-top boxes that infringe on the patent could be blocked at the port, according to Cowen analyst Robert Stone. The patents related to scheduling recording remotely, Stone wrote in a note to clients. Stone wrote that TiVo is significantly undervalued and he believes shares offer an 80% upside, partly due to the patent ruling. Rovi, which bought TiVo for $1.1 billion last year, brought a second federal case against Comcast involving eight additional patents. Stone wrote that it makes sense for Comcast to settle following the unfavorable International Trade Commission case. Shares of TiVo have declined more than 15% in the year to date, but are up more than 6% in the trailing 12-month period. By comparison, the S&P 500 index is up nearly 8% in the year and 15% in the last 12 months.
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