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Technology Stocks : Gemstar Intl (GMST)

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To: Curbstone who wrote (6238)6/10/2003 3:26:20 PM
From: Mike Buckley  Read Replies (1) of 6516
 
Mike,

I don't know whether the MS and Gemstar products are direct competitors

I don't know either, but even if it is a competitor, Gemstar might be able to extract revenue from the sale of Softie's product. Microsoft and Gemstar have an agreement with about 13 years remaining on it that Microsoft pays Gemstar $10 - $20 per unit that uses Gemstar's IPG technology. It's very possible that Microsoft's software employs that IPG technology. (That's for non-computer devices only; it includes WebTV and set-top boxes.)

Also, the agreement requires that Microsoft pays Gemstar 20% - 30% of IPG-related advertising and e-commerce revenue over any platform. So, if Microsoft derives such revenues for use of its own platform, Gemstar's cash register also goes cha-ching.

--Mike Buckley
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