Shares of TiVo Inc. fell sharply Thursday after a federal appeals court ruling Wednesday extended a stay allowing Dish Network Corp. customers to continue using their digital video recorders.

TiVo and Dish had been enmeshed in a patent infringement case since 2004. A federal judge last month said Dish and EchoStar Corp. were in contempt of a ban on using a modified version of TiVo's DVR technology. Dish was ordered to pay TiVo $103 million plus interest in damages. Dish appealed that decision and applied to be able to continue using the technology until the appeal is heard.

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