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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 104.14+0.1%12:34 PM EST

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To: Barry Grossman who wrote (53942)9/18/2000 8:28:12 PM
From: jim kelley   of 93625
 
Barry,

Here are some back of the Excel envelope calculations that may shed a little light on Infineon, Hyundai and Micron's current litigation:

----------------INF-----Hyundai--MU----NEC----Total
2000-royalties--26.6--- 63.7---- 54.3-- 32.7-- 177.5
2001-royalties--49.2--- 117.7---100.2-- 60.4-- 327.5

In millions of dollars.

Hence, Hyundai has about 180M in payments, MU about 154 M, and Infineon about 75.8 M over the next year unless the negotiate terms. There is plenty of reason for them to litigate if they can find a basis for litigation. It could well be a mistake that sinks these companies because if it goes to trial and RAMBUS prevails, it is likely these companies will be paying a lot more than 1.5%.

By the way, QCOM is collecting 4% royalty of wholesale price for CDMA cellphones. This is a lot higher than RAMBUS' royalty.

JK
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