A key issue in flash memory, or for that matter, any other type of memory, is the ease with which copyright material can be downloaded and distributed. You can make a tape copy of music on a CD, but the copy is clearly inferior, unless you are using a digital tape recorder. Copying an original on flash memory, with no moving parts or other factors to interfere with the original, means that copies of virtually the same quality as the original can be made over and over again - unless there is a way to prevent it. The encryption codes that can be used on SanDisk MultiMedia Cards, and the similar technology being applied to the 2nd generation CF cards, to be made under an agreement between SNDK, Matsushita (Panasonic), and Toshiba, seem to take care of the problem of recopying, thereby preserving the copyright.
Sooner or later we will come round to the hard fact that valuable information must be handled as such and not given away for free. That goes as much for music as for investment advice. Built in protection for intellectual property represents an important gain over present slipshod procedures. SNDK has worked out an acceptable and economical method for protecting intellectual assets, and should reap enormous benefits from this for its shareholders. It's just one more reason why the shares, despite their record gains, are very likely still undervalued. |
