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GEMSTAR SUES STARSIGHT FOR PATENT MISUSE AND ANTITRUST VIOLATIONS; LAWSUIT TO RENDER ALL STARSIGHT PATENTS UNENFORCEABLE

 PASADENA, Calif., Nov. 16 /PRNewswire/ -- Gemstar Development Corp. announced today that it has filed a lawsuit in the United States District Court, Central District of California, against StarSight Telecast Inc. (NASDAQ: SGHT) charging StarSight with patent misuse, violation of various federal and state antitrust laws and tortious interference.
 All of StarSight's issued patents are involved. Gemstar's complaint alleges that StarSight, using an invalid patent, coerced VCR and television manufacturers who are licensees of Gemstar's VCR Plus+ technologies to license other StarSight patents and to incorporate the StarSight electronic guide.
 StarSight's systematic attempt to inhibit competition by tying one patent to another constitutes patent misuse and further violates antitrust laws including the Sherman Act and the Cartwright Antitrust Act. The effect of such unlawful activities is to render the involved StarSight patents unenforceable. The suit also seeks to invalidate the StarSight patents and to enjoin StarSight from future violations of the antitrust laws. A recovery based on violations of the antitrust laws carries with it treble damages as well as the awarding of costs of suit and reasonable attorney's fees.
 Gemstar Development Corp. developed the VCR Plus+ system that allows the consumer to program a VCR for recording simply by entering a PlusCode number printed in every major newspaper and all editions of TV Guide. Gemstar has numerous intellectual property rights in the areas of television, VCR, cable box, and other audio and video technologies.
 StarSight's much ballyhooed electronic television guide, which was the subject of an IPO a few months ago, has been scheduled for consumer testing several times over the past years but has been postponed each time.
 Henry C. Yuen, chief executive officer of Gemstar, emphasized that Gemstar believes in fair and honest competition among technologies and free choice by the consumer market. "StarSight should never have resorted to unlawful acts to coerce manufacturers to incorporate its system without regard to consumer interest," said Yuen. "As a licensor, Gemstar feels a responsibility to its licensees to ensure that they can freely select the technologies they decide to incorporate on the basis of consumer acceptance. Gemstar is resolved to vigorously defend its rights and to prosecute any unlawful attempts to interfere with its business."
 -0- 11/16/93
 /CONTACT: David Ellis, Rogers & Associates, 310-552-6922/
 (SGHT)


CO: Gemstar Development Corp.; StarSight Telecast Inc. ST: California IN: ENT SU:

LS-LM -- LA017 -- 4894 11/16/93 08:45 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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