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To: Mike Buckley who wrote (6593)	9/19/1999 7:04:00 PM
From: NY Stew	Read Replies (1) \| Respond to of 54805

Mike, P.S. Stew, in my mind the report isn't clear that Gemstar gets the $10 per set-top box from Sony even if Sony's customer chooses to use a competing guide. It's not clear that it does or doesn't get the $10 in that situation, at least not to me. I'd like documented clarification on that before I come to any definitive conclusion. From page 12 of the '99 Gemstar Annual Report: In October 1998, the Company entered into a multi-year agreement with Sony's Digital Network Solutions Co. division which agreed to incorporate the Gemstar Guide Technology in all of its satellite and digital terrestrial set top boxes in United States, Canada and Japan. Sony agreed to pay Gemstar a per-unit license fee based on platform and territory, as well as an up-front payment. This is similar to DirecTV in my understanding. Sony, Thomson, Hughes and the others have Gemstar Inside regardless of the application. Again, the enabling technology is needed and the application is subject to further negotiation(s). Regards Stew