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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: red jinn who wrote (3253)6/29/1999 1:05:00 AM
From: Mike Buckley  Read Replies (1) of 54805
 
red jinn,

Speaking of patents ...

There's this little company called Gemstar. :) There's also a little company called TV Guide. Gemstar has some patented technology for electronic program guides used in televisions. Mangement thinks TV Guide is using some of Gemntar's technology without permission.

There are some bigger companies called Scientific Atlanta and General Instrument. They make set-top boxes. Gemstar thinks the two companies are putting TV Guide's products which use Gemstar's technologies in their set-top boxes.

There are also some cable and wireless companies that provide programming. When they buy the set-top boxes to re-sell (or rent) to their customers, they decide which electronic program guides go in their set-top boxes.

Some folks have recently decided that it might be possible for the set-top box manufacturers to avoid legal hassles regarding the alleged patent infringements if they wait for the cable and wireless programmers to decide which products go in the boxes. The thinking is that the cable and wireless programmers can be subject to viable lawsuits in that situation, not the set-top box manufacturers.

Under typical patent law, is that reasonably possible?

--Mike Buckley

P. S. Gemstar, a W&W portfolio member, is only up 108% this year. Still watching and waiting. :)

P. P. S. If Stew corrects any of my assumptions, go with his scenario. He knows more about this stuff than I do.
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