Gemstar-TV Guide, Scientific-Atlanta Settle Litigation

0

Gemstar-TV Guide International Inc. and Scientific-Atlanta Inc. signed licensing agreements late Wednesday to settle outstanding litigation and grant each access to the other’s interactive program guide patents.


The companies also entered into a agreement under which Scientific-Atlanta will assist L.A.-based Gemstar-TV Guide to put Gemstar’s program guides onto Scientific-Atlanta’s digital TV set-top platform.


Under the agreements, which have a term of up to 9-1/2 years, Lawrenceville, Ga.-based Scientific-Atlanta will pay nearly $154 million to Gemstar-TV Guide, and Gemstar-TV Guide will pay about $89 million to Scientific-Atlanta.


Gemstar sued Scientific-Atlanta in 1998, accusing it of using patented technology without permission.


Scientific-Atlanta said it expects to incur a charge of $30 million to $50 million in the fourth quarter of fiscal 2005 related to the settlement.


“We are pleased to have reached an agreement with Scientific-Atlanta, and welcome the opportunity to work with them,” said Rich Battista, CEO of Gemstar-TV Guide, in a statement.


Gemstar-TV Guide’s stock was up 8.6 percent to $3.55 in mid-afternoon trading.

No posts to display