SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): March 1, 1997
General Instrument Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-5442 13-3575653
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(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation) Identification No.)
8770 West Bryn Mawr Avenue, Chicago, Illinois 60631
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(Address of principal executive office) (Zip Code)
(773)-695-1000
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(Registrant's telephone number, including area code)
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Item 5 Other Events
The Registrant hereby incorporates by reference the description of the matters
set forth in its press release dated March 1, 1997 (such press release being
Exhibit 99 attached hereto).
Item 7 Financial Statements and Exhibits
(c) Exhibits
99 Registrant's press release dated March 1, 1997
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL INSTRUMENT CORPORATION
By: /s/ Paul J. Berzenski
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Paul J. Berzenski
Vice President and Controller
DATE: March 1, 1997
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EXHIBIT INDEX
Sequential
Page
No. Exhibits No.
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99 The Registrant's press release dated 4
March 1, 1997
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EXHIBIT 99
Media: Dick Badler (773) 695-1030
Investors: Mark Borman (773) 695-1150
NO INJUNCTION IN NEXT LEVEL COMMUNICATIONS / DSC SUIT, APPEALS COURT CONFIRMS
Damages-Only Remedy Against General Instrument Subsidiary
CHICAGO (March 1, 1997) -- General Instrument Corporation (NYSE:GIC) today
announced that the U.S. Court of Appeals for the Fifth Circuit confirmed
Friday that no injunction will be issued against the company's Next Level
Communications (NLC) subsidiary in the litigation with DSC Communications
Corp. The ruling caps a nearly two-year legal battle in the federal
district court in Texas, initiated by DSC seeking to prohibit NLC from
marketing its switched-digital video solutions for the telephone local loop
market.
The Court of Appeals on Friday reversed the district court judgment for
diversion of a corporate opportunity by NLC and its founders, and upheld a
damage award of $138 million plus interest for misappropriation of trade
secrets. DSC had originally claimed damages of $369 million and in its
appeal had sought an award of $250 million.
"We've maintained all along that the outrageous damages claimed by DSC were
out of line," said Thomas A. Dumit, Vice President and General Counsel of
General Instrument. "The court of appeals found no basis for either the
additional inflated sum or the injunction sought by DSC."
General Instrument took a pre-tax charge of $141 million against earnings
in the second quarter of 1996 to cover potential damages and the cost of
litigation associated with the suit.
(more)
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Next Level/DSC
Page 2
"This dispute has become a purely financial matter for which we are
prepared," said Dumit. "Most importantly, the court has found that Next
Level Communications can continue to market its next-generation telephony
solutions -- and prove its mettle in this exciting marketplace."
Upon completion this summer of its recently announced strategic
restructuring, General Instrument Corporation will divide into three
separate public companies that are leaders in distinct global growth
markets. NextLevel Systems, Inc., comprised of the Broadband Networks
Group, the Satellite Data Networks Group and GI's Next Level Communications
subsidiary, will emerge as a leading worldwide supplier of systems and
components for high-performance networks delivering video, voice and
Internet/data services. CommScope, Inc. is the world's largest manufacturer
of coaxial cable and a leading supplier of high-performance electronic
cables. General Semiconductor, Inc. (currently Power Semiconductor) is a
world leader in the sale of discrete semiconductors.
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