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To: NY Stew who wrote (12892)	12/17/1999 11:46:00 AM
From: Eric Jacobson	Read Replies (1) \| Respond to of 54805

Any TV listings/navigator that Microsoft deploys, regardless of platform and anywhere is the world, is royalty bearing for Gemstar which includes the 45MM upfront fee, $9-$10/unit fee, annual continuation fee tied to the CPI and a 25-30% split of advertising. Stew, this is a little different than my understanding. According to the Stephens Report (p. 27): In particular, Microsoft pays the per-unit fee for each non-computer device that contains a guide based on Gemstar's IPG technology. This includes WebTV Plus boxes as well as cable set-top boxes...However, Gemstar does not receive a per-unit fee if a guide based on its technology is used in any computer device. This includes Windows 98, Windows 2000 and Windows CE operating systems that are deployed in computers. Microsoft also agreed to pay Gemstar approximately 205-30% of any IPG-related revenue from advertising and e-commerce over any platform. So, based on this, my understanding it G doesn't collect the per-unit licencing fee for Windows deployed in a computer. Let me know if there's something I'm missing.