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Technology Stocks : WDC/Sandisk Corporation
WDC 187.78-6.1%3:59 PM EST

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To: Ausdauer who wrote (16571)11/13/2000 5:42:06 PM
From: Art Bechhoefer   of 60323
 
A settlement conference would most likely NOT be heard by the trial judge. A lesser official, often a magistrate, will preside. The fact that a settlement conference has been scheduled looks very promising to me, for the following reasons:

1. The initiative here is most likely from Lexar, which does not want to risk a jury finding intentional infringement (resulting in treble damages for any award).

2. A settlement means an immediate resolution of the matter, most likely with an agreement that neither side will appeal; or in other words, that the sides will agree to a dismissal of the suit with prejudice. The term "with prejudice" means that the suit cannot be brought again.

3. If a settlement is what the two sides are after, it will most certainly give SNDK access to Lexar's controller technology and result in future royalty payments by Lexar to SNDK. I don't think it would require royalty payments for prior infringement, as one of the terms of the settlement is probably that Lexar admits no wrongdoing. There would probably be some payment of legal fees to SNDK if SNDK prevails.

Art
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