CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 118.22

-0.4%

3:27 PM EST

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To: pokysconductor who wrote (7584)	3/6/2000 1:18:00 AM
From: Grand Poobah	Read Replies (1) of 8193

Since Sigmatel's quarterly revenue is only on the order of $10 million, I doubt the direct cash payout will be very big. I think the more important thing CRUS is going after is to send a message, not only to Sigmatel but also to all their competition, that they will protect their patent portfolio. It is one way to eliminate some of the competition in the audio codec business. If one company can get away with copying their intellectual property and underpricing them on the resulting product, then a lot more will start doing it. Conversely, if several companies find out that there are repercussions for infringing on CRUS patents, the rest of the competition should be more wary. Similarly, the sound card makers could be held liable and/or face injunctions for selling boards with the infringing chips, so they will be more likely to use the "real" CRUS chips. G.P.

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