Scientific-Atlanta Sues Gemstar International

Scientific-Atlanta Inc., the No. 2 U.S. cable television set-top box maker, said Friday it filed a lawsuit against Pasadena-based Gemstar International Group alleging that the company is trying to monopolize and restrain development of TV program guides.

Norcross, Ga.-based Scientific-Atlanta claims that Gemstar’s patents for its program guides are invalid and that it’s trying to exert monopoly power to restrain others from developing competing guides. Scientific-Atlanta asked the U.S. District Court in Atlanta to invalidate certain Gemstar patents and rule that Scientific-Atlanta is not infringing on Gemstar’s technology.

Gemstar, which markets the VCR Plus video recording technology and has developed electronic programming guides, has aggressively defended its more than 60 patents. These include its Levine patents covering interactive guides using locally stored, or cached, data.

Gemstar stock fell $6.25 to close at $60.25 on Nasdaq. Scientific-Atlanta stock fell 75 cents to close at $20 on the New York Stock Exchange.