Gemstar-TV Guide Signs Multi-Year Licensing Agreements With Pioneer - Update
(RealTimeTraders.com) - Before the bell Friday, Gemstar-TV Guide International Inc. (GMST) announced that it has entered into a multi-year licensing agreement with Pioneer Corp. (PIO) and its subsidiaries.
Under the agreement, Gemstar-TV stated that Pioneer Corp. and its subsidiaries the right to incorporate its interactive program guide for consumer electronics products into digital televisions and digital recorders in North America, Japan and Europe.
The Los Angeles, California-based Gemstar-TV said that the agreement also includes a patent license that enables Pioneer to incorporate its technology into Pioneer's digital cable products in North America.
Gemstar-TV revealed that Pioneer would pay license fees to it based on the number of units sold under the licenses, and that the deal includes a one-time payment of $14 million.
Jeff Shell, CEO of Gemstar-TV Guide, said, “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.”
PIO closed Thursday’s regular trading session $27.06, while GMST closed at $7.20
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