Scientific-Atlanta, Gemstar Put Down the Gloves
Scientific-Atlanta and Gemstar-TV have resolved outstanding litigation and inked a deal that will allow both companies to cross-license intellectual property assets.
According to the deal, both companies will have access to each other's interactive program guide patents. The companies also entered into a porting agreement in which Scientific-Atlanta will assist Gemstar-TV Guide to port Gemstar IPGs onto the S-A Explorer set-top platform.
Under these agreements, which run approximately nine and-a-half years, S-A will pay about $154 million to Gemstar-TV Guide, and Gemstar-TV Guide will pay S-A $89 million.
S-A is expected to incur a charge of $30 million to $50 million during the company's fourth fiscal quarter in 2005, related to the settlement.
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