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Technology Stocks : Gemstar Intl (GMST)

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To: Uncle Frank who wrote (1001)12/7/1999 2:19:00 AM
From: NY Stew  Read Replies (1) of 6516
 
Uncle Frank,

Re: Scientific Atlanta charges

There is a bit more to the chronology. Licensing negotiations broke down between Gemstar and Scientific Atlanta. Apparently SFA did not like the terms that they were being offered. Gemstar did file patent infringement charges but SFA made their move first. This is why I called it pre-emptive. SFA has home court advantage but then so did United Video (TV Guide). SFA carpet-bombed in my view hoping to hit something in discovery or, as you have stated, get favorable treatment at trial.

This may all be for naught anyway. Remember the date 7-01-00. That's when cable STBs will be retail and Sony, Philips, Thomson, Matsushita and the other major CE OEMs will compete with SFA and GIC on a level playing field. SFA has communicated with Gemstar desiring to license certain IP not in contention. They will likely suffer losses if the competition has superior guide technology.

As always, just my opinion.

Regards
Stew

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