Gemstar-TV Guide International CEO Henry Yuen spoke to New Americ...

Technologies, Pioneer New Media Technologies, Pioneer N. America, Scientific-Atlanta and SCI Systems imported set-top boxes containing Interactive Program Guides that it said infringed on patents held by Gemstar and its StarSight Telecast subsidiary. In briefing with reporters at National Press Club in Washington, Yuen said he couldn’t predict which way judge with International Trade Commission (ITC) would decide but said Gemstar could appeal if ruling came down on other side. He acknowledged case had affected company’s stock price adversely. Yuen said company had concluded 180 license agreements without litigation and bemoaned company’s reputation as being litigious. “We are a company that is quite misunderstood,” he said: “We have to sue infringers who are flagrant in these kinds of cases. Otherwise, it would be very, very unfair to licensees who paid.” Although company has 20-year interactive program guide agreement with Adelphia, Yuen said Gemstar’s bottom line wouldn’t be badly affected if Adelphia filed for bankruptcy. There are some accounts receivable, Yuen said, but they aren’t large enough to have significant impact on Gemstar’s balance sheet. He said he was hopeful FCC would change its mind on its decision that Gemstar’s electronic program guide (EPG) data wasn’t “program-related” and therefore wasn’t entitled to must-carry status when it was transmitted by broadcasters. Gemstar filed motion to reconsider, which is pending. Yuen said company officials had met with FCC commissioners. “I clearly cannot predict how they will make up their minds but we are satisfied with how we presented it,” he said. He acknowledged that arguments over transmission of data over vertical blanking interval (VBI) in analog might become moot in coming years as nation transitioned to digital, where there’s no VBI. Nevertheless, he said it was important to argue point because analog probably still would be available for many years.