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Non-Tech : Amati investors

AMTX 1.410

+4.1%

12:18 PM EST

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To: John Hunt who wrote (13347)	4/4/1997 5:56:00 PM
From: pat mudge	of 31386

A quick recap: When RC called back after the close, I felt as though I needed a blood tranfusion and I had just one question: "Can Robotics screw us out of the license?" His answer, "No." I asked about chips and who would license from whom and he gave several scenarios: 1) If USR uses ADI chip with Aware code it means ADI must license from Amati. 2) If they use the TI chip with some of AMTX's intellectual property plus their own code it means TI has to pay Amati. 3) If they take the plain vanilla TI C6X chip and try to code it from scratch, somebody has to pay if it's ANSI-compliant, again, to Amati. 4) If they go non-standard, there would be a big fight. This seems unlikely. USR is absolutely insistent that they control the code. There is some doubt that USR will use Aware's code. In this case the announcement is little more than an agreement to transfer technology---they're going to pick Aware's brain. USR has told Amati that they know its technology is superior but that with time they'll catch up. If they run into trouble, they know they can use TI's chip with Amati's software as a backup. (It ain't over till it's over.) Cheers! Pat

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