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)
July 24, 1996
STARSIGHT TELECAST, INC.
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(Exact Name of Registrant as Specified in Charter)
California
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(State or other jurisdiction of incorporation)
0-21902 94-3003250
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(Commission File No.) (IRS Employer Identification Number)
39650 Liberty Street, 3rd Floor
Fremont, CA 94538
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(Address of Principal Executive Offices)
(510) 657-9900
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(Registrant's Telephone Number, Including Area Code)
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Item 5. Other Events
On July 24, 1996 and July 29, 1996, the Registrant issued a press
release and a media alert, included as Exhibits 99.1 and 99.2, respectively,
regarding an award by the American Arbitration Association to the Registrant of
$15 million in monetary damages plus attorney's fees against Scientific-Atlanta,
Inc. for breach of contract, including misappropriating the Registrant's
intellectual property. In addition to the monetary award, the Registrant was
granted certain injunctive relief prohibiting Scientific-Atlanta from accepting
any new customer orders for any products incorporating any interactive
electronic program guide for a period of three years. Information which is set
forth in the Registrant's press release and media alert is incorporated herein
by reference.
Item 7. Financial Statements Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press Release dated July 24, 1996
99.2 Media Alert dated July 29, 1996
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Signature
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.
STARSIGHT TELECAST, INC.
Dated: July 30, 1996 By: /s/ Martin W. Henkel
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Martin W. Henkel
Executive Vice President
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibits Description
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99.1 Text of Press Release
dated July 24, 1996
99.2 Text of Media Alert
dated July 29, 1996
StarSight Telecast, Inc.
39650 Liberty Street, 3rd Floor NEWS
Fremont, CA 94538
510.657.9900
Fax 510.657.5022
CONTACT: Sally Erny FOR IMMEDIATE RELEASE
The Market Relations(R) Group ---------------------
(415) 354-4486 July 24, 1996
Ann L. McDougall
StarSight Telecast, Inc.
(510) 657-9900
STARSIGHT TELECAST ANNOUNCES FIFTEEN MILLION DOLLAR
ARBITRATION AWARD AND INJUNCTION
AGAINST SCIENTIFIC-ATLANTA
FREMONT, CA--StarSight Telecast, Inc. (Nasdaq: SGHT), the leader in interactive
electronic program guides (EPGs), announced today that an American Arbitration
Association (AAA) panel in San Francisco awarded StarSight Telecast $15 million
plus attorney's fees and arbitration costs against Scientific-Atlanta for breach
of contract, including misappropriating StarSight Telecast's intellectual
property.
In addition to the monetary aspects of the award, StarSight Telecast
was also granted certain injunctive relief prohibiting Scientific-Atlanta from
accepting any new customer orders for any products incorporating an interactive
EPG for a period of three (3) years. This injunctive relief is in addition to
and does not affect any further injunctive remedies that a court of competent
jurisdiction may issue against Scientific-Atlanta for the infringement of any
patent owned by StarSight Telecast based upon the future activities of
Scientific-Atlanta.
The arbitration arose from an agreement which StarSight Telecast and
Scientific-Atlanta entered into on October 1, 1992. By the terms of the
agreement, Scientific-Atlanta agreed to incorporate a StarSight(R) interactive
guide into its advanced analog cable converter box called the 8600X by August
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StarSight Telecast, Inc.
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1993. Instead, Scientific-Atlanta developed its own "Native Guide" using
StarSight Telecast's Intellectual Property and released it to the market in
1994.
The arbitration panel determined that StarSight Telecast "Substantially
performed its obligations under the Agreement" and that the use by
Scientific-Atlanta of StarSight Telecast's technical information, confidential
information, user interface, and inventions claimed within specified patents was
immediate and pervasive.
Larry W. Wangberg, Chairman and CEO of StarSight Telecast, stated "The
arbitration award underscores StarSight Telecast's commitment to protect its
intellectual property in the interactive program guide arena and supports its
efforts to continue development of EPG's with enhanced features which will
benefit the consumer."
As announced on February 15, 1996, Scientific-Atlanta sued StarSight
Telecast, Inc. and Philips Electronics North America based upon alleged
infringement of three (3) Scientific-Atlanta patents related to the sale of the
StarSight CB1500 receiver. StarSight Telecast believes the case has no merit and
that it is licensed under the Scientific-Atlanta patents by virtue of the
October 1, 1992 Agreement. StarSight Telecast filed a new arbitration action in
San Francisco against Scientific-Atlanta in April 1996 to resolve this issue.
The Federal District Court for the Northern District of Georgia, Atlanta
division, in response to a StarSight Telecast motion, has recently stayed all
proceedings in the Atlanta action, pending the outcome of the new arbitration.
StarSight Telecast, Inc. is a publicly held company backed by strategic
partners Viacom Inc., THOMSON multimedia S.A., Cox Communications, Inc., Tribune
Company, Providence Journal Company and Time Warner, Inc. The company's stock is
traded on The Nasdaq Stock Market under the symbol SGHT.
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StarSight Telecast, Inc.
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EDITORS: StarSight Telecast, Inc. World Wide Web Site, hhtp://www.starsight.com
StarSight is a registered trademark of StarSight Telecast, Inc.
Except for the historical information contained herein, the matters discussed in
this news release are forward looking statements that involve risks and
uncertainties, including the timely availability and acceptance of new products,
the impact of competitive products and pricing, the management of growth, and
the other risks detailed from time to time in the Company's SEC reports,
including the reports on form 10-K for the year ended December 31, 1995 and on
form 10Q for the quarter ended March 31, 1996.
StarSight Telecast, Inc.
39650 Liberty Street, 3rd Floor NEWS
Fremont, CA 94538
510.657.9900
Fax 510.657.5022
MEDIA ALERT For Immediate Release
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July 29, 1996
STARSIGHT TELECAST MAKES
STARSIGHT TELECAST/SCIENTIFIC-ATLANTA
ARBITRATION AWARD DOCUMENT AVAILABLE
StarSight Telecast, Inc. (Nasdaq: SGHT) is making the text of the
StarSight Telecast/Scientific-Atlanta arbitration award document available upon
request to be responsive to questions. The American Arbitration Association
(AAA) panel has taken strong exception to particular activities of
Scientific-Atlanta as a basis in determining its award to StarSight Telecast.
The award relates to historical, as well as prospective activities of
Scientific-Atlanta.
To receive the text of this document, please call 510.657.9900, ext
2023.
Background
On July 25, 1996, StarSight Telecast announced that an AAA panel in San
Francisco awarded StarSight Telecast $15 million plus attorney's fees and
arbitration costs and injunctive relief against Scientific-Atlanta.
The injunction was granted following a month-long arbitration
preceding in which the activities of Scientific-Atlanta were carefully examined.
The panel expressly found that Scientific-Atlanta has used "for the development
of competing product, information protected under the terms of the Agreement
(technical information, user interface, inventions claimed in specified patents
and confidential information)."
For more information, contact:
Sally Erny Ann L. McDougall
The Market Relations(R) Group StarSight Telecast, Inc.
415.354.4486 510.657.9900
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