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Gemstar Unit Wins Ruling Against General Instrument

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Reuters

Pasadena-based Gemstar International Group Ltd. said that one of its units won an arbitration case against cable converter box maker General Instrument Corp. for “multiple tens of millions of dollars” in a ruling made by the American Arbitration Assn. General Instrument was accused of breach of contract with Gemstar’s StarSight Telecast unit and misappropriation of the unit’s patented interactive program guide technology. General Instrument said it estimated the compensatory and punitive damages would be $25 million to $36 million. An additional 50% of the amount would be added as punitive damages, plus attorney fees and costs, Gemstar said. Gemstar jumped $5.38 to $74.75 on Nasdaq. General Instrument, which is being acquired by Motorola, rose 25 cents to close at $51 on the New York Stock Exchange.

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