Pioneer Electronics -USA- INC. Applauds Ruling Against Gemstar in ITC Patent Case

Business Wire, June 21, 2002

Business Editors & High-Tech Writers

LONG BEACH, Calif.--(BUSINESS WIRE)--June 21, 2002

Pioneer Electronics (USA) Inc. ("Pioneer"), a leader in cable television digital set-top boxes, today announced it is very pleased with the ruling of Administrative Law Judge Paul J. Luckern in a patent infringement investigation following a complaint filed by Gemstar-TV Guide International, Inc., about sixteen months ago in the United States International Trade Commission. The judge's ruling that importation of certain Pioneer Corporation set-top boxes does not infringe Gemstar's patents supports Pioneer's original position in the proceeding that Gemstar should not prevail in its claims. In addition to finding that Pioneer does not infringe Gemstar's patents, the judge also ruled that Gemstar misused one of its patents, a further reason for denying Gemstar's requested relief.

Judge Luckern found "no violation by any respondent of section 337." Specifically, in his conclusions of law, Judge Luckern found that Gemstar had failed to establish that any of the respondents had infringed Gemstar's patents. In addition, Judge Luckern found that Gemstar had engaged in patent misuse with respect to one of the patents.

"We feel vindicated by the judge's ruling in our favor," said Paul Dempsey, president of the Business Solutions Division at Pioneer Electronics (USA) Inc. "We are looking forward to an end to this case, although based on Gemstar's track record as a litigious company, we realize that Gemstar is likely to petition for the International Trade Commission's review of the ALJ's decision and to appeal any unfavorable rulings to the United States Court of Appeals for the Federal Circuit. If that happens, we expect to once again vigorously set forth our positions on all the issues, and we look forward to receiving favorable results."

Dempsey added that "Pioneer remains willing in spite of its victory to establish a more positive relationship with Gemstar by resolving any remaining issues."

The U.S. International Trade Commission is an independent, nonpartisan, quasi-judicial federal agency providing trade expertise to both the legislative and executive branches of government, helping to determine the impact of imports on U.S. industries, and directing actions against certain unfair trade practices, such as patent, trademark and copyright infringement.

Pioneer Electronics (USA) Inc. is headquartered in Long Beach, Calif., and its U.S. Web address is www.pioneerelectronics.com. Its parent company, Pioneer Corporation, is a leader in optical disc technology and a preeminent manufacturer of high-performance audio, video, computer and cable television equipment for the home, car and business markets. Pioneer Corporation focuses on four core business domains including DVD, display technologies, Digital Network Entertainment(TM) and components. Founded in 1938 in Tokyo, Pioneer Corporation and its affiliates employ more than 31,000 people worldwide. Its shares are traded on the New York Stock Exchange (NYSE:PIO).