Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 97.02

-0.5%

Jan 6 3:59 PM EST

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To: Bilow who wrote (59132)	10/29/2000 3:39:44 PM
From: blake_paterson	Read Replies (1) of 93625

Carl(a), re: "What you are suggesting is that NEC and Hitachi will have to pay royalties on DDR chips manufactured for Elpida, and then Elpida will also have to pay royalties when they sell it to customers." whassa matta, you no speaki english? The royalty is paid by the producing entity (Hitachi or NEC). NOT Elpida. They (Elpida) absorb all costs of unit production, fixed or variable (this part includes things like % royalty pymts) by paying the transfer price for the chip. Entendiou? I don't need Zeev to explain royalty agreements to me, thanks; I've written a few of them meself. BP

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