* Q2 loss 3 cts/share vs Street view loss 5 cts
* Q2 service, tech rev $48.8 mln vs Street view $47.4 mln
* Files patent infringement complaints vs AT&T, Verizon
* Shares up 1 percent in extended trading
SAN FRANCISCO - TiVo Inc (TIVO.O) reported a smaller-than-expected loss on Wednesday, as sales came in slightly better than Wall Street's forecast, and the digital video recorder maker announced new legal action against those it claims are using its technology without permission.
TiVo said it filed infringement complaints against AT&T Inc (T.N) and Verizon Communications Inc (VZ.N) over three patents including TiVo's Time Warp software, which allows users to record one TV program while watching another.
TiVo has been locked in long-running litigation with set-top box maker EchoStar Corp (SATS.O) and satellite pay TV provider DISH Network Corp (DISH.O) over the software.
Unfortunately, there are multichannel operators who compete with us through the unauthorized use of our intellectual property, Chief Executive Tom Rogers said on a conference call with analysts.
EchoStar has been a prime example of this and we have recently found ourselves in a similar situation with AT&T and Verizon, where business agreements have not been reached, yet we need to stop their continued use of our intellectual property.
Last month, EchoStar and DISH won a stay, pending their appeal, of a Texas court's order that they disable millions of DVRs that infringe on TiVo's patent.
The company said it made progress developing new partnerships in the July quarter, pointing to deals with Best Buy (BBY.N) and RCN.
TiVo swung to a net loss of $2.9 million, or 3 cents a share for the fiscal second quarter ended July 31, from a net profit of $2.9 million, or 3 cents a share, for the year-ago period.
The average analyst estimate was for a loss of 5 cents a share, according to Reuters Estimates.
Service and technology revenue was $48.8 million, beating the Wall Street estimate of $47.4 million. Total revenue fell 12 percent to $57.4 million.
TiVo-owned subscription gross additions for the second quarter totaled 31,000, down from 36,000 a year ago. The TiVo-owned monthly churn rate was 1.5%.
Overall, TiVo-owned subscriptions ended the quarter at 1.6 million.
The company forecast service and technology revenue for the third quarter of $46 million to $48 million -- in line with Wall Street's forecast -- and a loss of $8 million to $10 million.
Shares of Alviso, California-based TiVo closed at $10.50 on the Nasdaq and rose to $10.60 in extended trading.
The cases are: Tivo Inc vs Verizon Communications Inc No. 2:09-00257 and Tivo Inc vs AT&T Inc No. 2:09-00259, both in the U.S. District Court for the Eastern District of Texas. (Reporting by Gabriel Madway; editing by Carol Bishopric, Leslie Gevirtz)