WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 169.98

-2.4%

3:59 PM EST

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To: Andre Williamson who wrote (13745)	8/8/2000 10:02:59 PM
From: wily	Read Replies (1) of 60323

If neither is paying the other, then where's the money coming from? Maybe there's different kinds of cross-licensing -- business relationships can be extremely complicated and creative. I was just under the impression that cross-licensing implied no fees are exchanged -- the quote from that article would contradict that assumption: ...Revenues from licenses and royalties in the current quarter increased by $2.5 million, to $5.9 million, attributable to recent cross-license agreements entered into by SanDisk with Hitachi,... I was hoping someone familiar with cross-licensing relationships could shed some light. I was also thinking that the small-form-factor flash card market really took off subsequent to the signing of those agreements, and maybe Sandisk got the short end of the stick? I think Ausdauer is probably right that a few select companies don't pay Sandisk MMC card royalties and the rest do. Probably Hitachi pays royalties to Sandisk on other things besides MMC, and in this light, all the press releases and white papers coexist without contradiction. wily

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