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Gemstar-Time Warner Dispute Simmers

By Ted Hearn -- Multichannel News, 8/7/2001 10:14:00 AM

Things appear to be heating up at the Federal Communications Commission in connection with Time Warner Cable's dispute with Gemstar-TV Guide International Inc. on mandatory cable carriage of Gemstar's TV-embedded electronic program guide.

Gemstar maintained that cable operators are required to pass through EPGs transmitted over the vertical-blanking interval embedded in local TV signals. Time Warner blocked Gemstar's EPG on nine systems in eight states, but the MSO agreed to restore the service while the issue was pending at the FCC.

Gemstar complained that Time Warner had stripped EPG information from the VBI that was intended to serve 'Guide Plus+'  hardware built into TVs and other devices sold at retail.

In April, Gemstar asked the FCC to dismiss its complaint against Time Warner -- reportedly on the eve of an agency ruling in favor of Time Warner after reviewing the case for more than one year -- but Time Warner instantly countered by urging the commission to issue a ruling.

On July 27, Gemstar's team of Washington, D.C.-based lawyers met with 13 FCC officials, including commissioners Kevin Martin and Kathleen Abernathy, as well as aides to chairman Michael Powell and commissioners Gloria Tristani and Michael Copps. The lawyers also met with five officials from the Cable Services Bureau.

Gemstar claimed that cable carriage was mandatory because EPGs convey 'program-related' information. But Time Warner insisted that because Gemstar provided vast programming information well beyond the content of the channel on which the EPG was carried, Gemstar needed carriage permission from the cable operator.

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