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Technology Stocks : Gemstar Intl (GMST)

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To: tinkershaw who wrote (6360)3/13/2004 12:17:36 PM
From: tinkershaw  Read Replies (1) of 6516
 
I believe N.Y. Stew mentioned this in the past, that most of GMST's patents have not been tested, and the most powerful ones are the ones that enable more advanced Guide features. And it may be the strength of these more advanced patents that has lead to these agreements and partnerships.

Without reading the contracts, all I can have is faith that GMST management did indeed obtain rights to ensure maximum returns on this media strategy, and that loop-holes, such as Showcase like ads, are not excluded from GMST's advertising revenue share.

But to conclude in this long answer, indeed, I much prefer QCOM's power to make grumbling partners pay no matter how bitterly they feel about it. Standard Oil, RCA, IBM, MSFT, INTC, CSCO, now QCOM. GMST once looked like it could be another RCA like outfit, a historical monster company. It is not at all certain if they still possess this sort of market power. But then again, it is not at all certain that they haven't gained just such similar power with the distribution agreements they have now reached.

Others with input on the topic?

Tinker
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