Gemstar Patent Claims Dismissed

Cable television set-top box maker Scientific-Atlanta Inc. on Monday said a Georgia federal court has thrown out some patent infringement claims against it made by Gemstar-TV Guide International Inc.

Atlanta-based Scientific-Atlanta said the court ruled that the firm’s Explorer 3000 and 8600x set-top boxes do not infringe two patents held by Gemstar, which makes interactive television-programming guides.

The ruling is yet another victory in the company’s legal war with Gemstar over patented innovations. The same court previously threw out claims made by Gemstar on the same two patents against Scientific-Atlanta’s Explorer 2000 boxes.

Scientific-Atlanta said other patents remain under contention in the same Georgia suit.

Scientific-Atlanta shares gained 78 cents, or 6%, to close at $13.97 on the New York Stock Exchange, and Gemstar shares rose 11 cents to $3.74.

Gemstar shares have fallen 87% in the last year as it unsuccessfully sued to enforce its patents against makers of set-top boxes including Scientific-Atlanta, Pioneer Corp. and Sanmina-SCI Corp.

A spokeswoman for Gemstar had no immediate comment.

Pasadena-based Gemstar, which is under formal investigation by the Securities and Exchange Commission, said last week it would restate 2 1/2 years of financial results, including removing $113 million it booked as revenue in anticipation of winning the dispute with Scientific-Atlanta.

Gemstar Chief Executive Henry Yuen was replaced last month after an accounting review by the board’s audit committee, and last week the company fired its accounting firm, KPMG. Jeff Shell, a former executive of Gemstar’s largest shareholder, News Corp., took over the reins.

Gemstar holds more than 190 patents for the software used to run menus that help TV viewers pick shows.

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Bloomberg News was used in compiling this report.