(PIO) Gemstar-TV Guide and Pioneer Sign License Agreements and Resolve Pending Litigation
Entertainment Editors/Business Editors
LOS ANGELES--(BUSINESS WIRE)--Feb. 27, 2004--Gemstar-TV Guide International, Inc. (NASDAQ:GMST)
-- Pioneer Licenses Right to Incorporate Gemstar-TV Guide's IPG for CE Products in North America, Japan and Europe -
-- Pioneer Licenses Gemstar-TV Guide Patents for Use in Pioneer's Digital Cable Products in North America -
-- All Outstanding Litigation Between the Two Companies is Resolved -
Gemstar-TV Guide International, Inc. (NASDAQ:GMST) and Pioneer Electronics (USA) Inc. today announced multi-year licensing agreements giving Pioneer Corporation and its subsidiaries the right to incorporate Gemstar-TV Guide's interactive program guide (IPG) for consumer electronics products into digital televisions and digital recorders in North America, Japan and Europe. The agreements announced today also include a patent license that enables Pioneer to incorporate Gemstar-TV Guide's technology into Pioneer's digital cable products in North America. Under the agreement, Pioneer will pay license fees to Gemstar-TV Guide based on the number of units sold under the licenses. All outstanding litigation between the two companies is resolved. The deal announced today includes a one-time payment of $14 million.
"I'm delighted to have resolved the issues between our two companies, and look forward to working with Pioneer to make their customers' television experience more simple and enjoyable," said Jeff Shell, CEO of Gemstar-TV Guide. "For Gemstar-TV Guide, this is another signal that our new approach to creating true partnerships across the consumer electronics, cable and satellite industries is working, and it is another important step in firmly establishing the Company as the premiere source of television guidance and information."
"Pioneer is pleased to put this issue behind us. Now we can devote 100 percent of our attention to providing the best technology and entertainment experience to the end users of our products," said Paul Dempsey, president of the Business Solutions Division of Pioneer Electronics (USA) Inc. "Pioneer will continue to offer and enhance our industry-leading digital cable set-top hardware as well as our Passport Interactive Program Guide."
Pioneer Electronics (USA) Inc. is headquartered in Long Beach, Calif., and its U.S. web address is www.pioneerelectronics.com. Its parent company, Pioneer Corporation, is a leader in optical disc technology and a preeminent manufacturer of high-performance audio, video, computer and cable equipment for the home, car and business markets. The company focuses on four core business domains including DVD, display, digital network entertainment and components. Founded in 1938 in Tokyo, Pioneer Corporation (NYSE:PIO) employs more than 35,000 people worldwide. Its shares are traded on the New York Stock Exchange.
About Gemstar-TV Guide International, Inc.
Gemstar-TV Guide International, Inc. is a leading media and technology company that develops, licenses, markets and distributes technologies, products and services targeted at the television guidance and home entertainment needs of consumers worldwide. The Company's businesses include: television media and publishing properties; interactive program guide services and products; and technology and intellectual property licensing. Additional information about the Company can be found at www.gemstartvguide.com.
Except for historical information contained herein, the matters discussed in this news release contain forward-looking statements that involve risks and uncertainties, including risks and uncertainties related to the Company's transition to a new management and corporate governance structure; an ongoing SEC investigation and pending litigation; the timely availability and acceptance of new products; the impact of competitive products and pricing; and the other risks detailed from time to time in the Company's SEC reports, including the most recent reports on Forms 10-K, 8-K and 10-Q, each as it may be amended from time to time. The Company assumes no obligation to update these forward-looking statements.
Note to Editors: Gemstar-TV Guide and TV Guide On Screen are trademarks or registered trademarks of Gemstar-TV Guide International, Inc. and/or its subsidiaries. The names of other companies and products used herein are for identification purposes only and may be trademarks of their respective owners.
CONTACT: Gemstar-TV Guide: