WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.00

-0.4%

Nov 7 9:30 AM EST

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To: Craig Freeman who wrote (10008)	4/1/2000 8:51:00 PM
From: Ausdauer	Read Replies (1) of 60323

Craig, You stated... It seems a poor bargain indeed if, after spending so much time and money in court, SNDK were to settle for normal royalties. IMHO, a cross-license to Lexar's IP, in addition to royalties, would be necessary ingredients for a settlement. Craig, they could write what I wrote and this still would not exclude a one-time payment to defray SanDisk legal fees and cover previous patent infractions. The open cross-licensing of Lexar's patents goes without saying. The proceeds from the IPO would go toward the one-time payment to SNDK. I would bury that somewhere deep in the registration statement, but remove all the language of about pending lawsuits and other doomsday predictions already there. CompactFlash, as an open standard competing out there with SmartMedia and the Memory Stick, needs a multitude of suppliers filling market demand and pushing the standard forward. Lexar would be a valuable long-term licensee and the admission of guilt will help draw in lesser opponents who likely face similar difficulties. Examples include the Simple Technology situation where they previously invested in Lexar's (Cirrus Logic's) IP in a bid to buy the company outright. They also have an IPO coming up real soon. Ausdauer

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