Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 95.57

+0.7%

Nov 28 9:30 AM EST

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To: Dan3 who wrote (44903)	6/18/2000 4:15:00 PM
From: Zeev Hed	Read Replies (2) of 93625

Dan, I think you are living in a dream world. If you were a member of LES, you would know that IP commands about 25% of the "financial benefits" (quite a cloudy definition, I'll grant you). 20% of profits for IP is bloody cheap. Consider that chip companies spend often more than 50% of their profits on R&D (excluding MU that rarely has profits, thus its spends more than 50% on R&D and AMD which historically had very little profits and their spending on R&D often exceeded their profits), buying in "ready R&D" and paying only 20% of profits is a steal. That is the reason that rational companies like INTC and Toshiba gladly pay these royalties. Zeev

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