JP Durham wrote: "However, as an investor, AMTX is attractive not only
because it will have a great product/ "system" shortly--but also because
others such as Aware/ADI must pay Amati a "reasonable" price or royalty
on all products implementing DMT technology. What is reasonable? Who
knows! But considering the market potential--domestic and
international--something even a 'little' reasonable will add up quickly.
In the future, if Aware/ADI do have a superior product over Amati's
using DMT...then it will be your modem that I buy. Only time will tell.
Good Luck!"
JP: According to the ICOT-Amati Merger Prospectus, a whoping 180 pages,
(p. 58) Amati owns 3 patents and 1 co-owned with Nortel "that are
necessare for conformance to the ANSI standardfor ADSL. Amati has
informally agreed with the ANSI standards body to license these patents
to third parties on fair and equitable terms." The keyword here is
"informally." Why would Amati give away its invaluable intellectual
properties for pennies? I'd see ANSI standard as a recognition. Amati
does not need ANSI blessings. Has DOS, Windows, etc. every been
submitted to the ANSI board? No. So how do you decide royalties? Based
on economics 101, it is supply and demand. Amati, with its patents, is a
legal monopoly. This means they will charge a lot.
Also, I doubt Aware/ADI or other developers can make DMT chips without
a license from Amati, based on the above quoted statement and a claim
made by Pete Chow, an Amati engineer who co-authored 2 of the key
patents, on the internet. I've asked Rupert Baines if Aware/ADI need a
license in my only other post on SI, and he has been very evasive. :-) |
