Lawyers for EchoStar claim News Corp.'s satellite TV company DirecTV hired hacker Christopher Tarnovsky to steal and sell security codes for its competing Dish Network, eventually costing EchoStar $900 million in lost revenue. Tarnovsky testified in court yesterday and admitted he wrote such a program and that he took money from News Corp. publishing unit HarperCollins for ten years. He said his first payment was "$20,000 in cash hidden in electronic devices mailed from Canada," reports Reuters. Tarnovsky and DirecTV claim the hacker was only "reverse engineering" the Dish technology — a perfectly legitimate practice in the electronics industry. Though not one typically funded through secret international payments from unrelated corporate subsidiaries. (Photo by geraintwn)

The U.S. Court of Appeals for the Federal Circuit affirmed a ruling against satellite TV company EchoStar, saying the company infringed on a DVR patent owned by TiVo. The ruling, which included an $94 million damage award and bans EchoStar from selling the product in question, says that EchoStar infringed on the "software" claims of the patent, but not on the "hardware" claims. EchoStar says that no customers will be affected by the ruling and that it already has a fix in place. After the ruling, TiVo's stock rose almost 30 percent to a new 52-week high. Why?

Remember CinemaNow, the Marina Del Rey-based movie-downloads service backed by Lionsgate, Microsoft, and Cisco, among others? Its video-streaming service has been left in the shadows by Apple, Netflix and Amazon.com, but CinemaNow's found a way to survive: porn.

The last we heard from Google on TV advertising, cofounder Sergey Brin gloated that "interest" and "bookings" were up. He told us that "the remarkable thing about television advertising, is that it is almost as accountable as online advertising." I didn't believe him then. The news that Nielsen has agreed to provide Google with demographic data on television audiences makes me even more skeptical. This just shows that Google had no idea what it was getting into when it decided to try to get into selling TV ads.

What does EchoStar's $380 million deal to buy Sling Media mean? In some ways, Sling's decision to sell out seems odd. Satellite TV is on the downswing, most people believe. Rupert Murdoch, after all, sold News Corp.'s stake in DirecTV, in part to raise cash to buy Dow Jones — favoring content, in other words, over distribution. But Charlie Ergen, the obstreperous entrepreneur behind EchoStar, may have a larger plan for Sling's Net-connected set-top boxes. "This is just the beginning," says Sling founder Blake Krikorian in an interview with PaidContent. He's not kidding. The rich EchoStar buy, I believe, is a move by Ergen to prepare his company for life after satellite TV.