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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 98.83+0.8%3:59 PM EST
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To: Barry A. Watzman who wrote (49511)8/12/2000 10:33:08 PM
From: jim kelley  Read Replies (2) of 93625
 
Barry,

What frequently happens in patent cases like this is that multiple defendants are not named. Rather deals are struck to settle pending the outcome say of the Infineon case.
The only problem with this type of arrangement is that Infineon ends up paying for the entire battle and the other companies have to set up risk reserves pending the outcome.
If they fund risk reserves pending the outcome of the case they are getting hit anyway.

So given the size of the liabilities it make more sense for these companies to settle and sign licenses. This clouds their future and their business plans for a long time if they chose to go to war.

I would think that RAMBUS is sitting down across the conference table and allowing each company to present any defenses it may have that might show RAMBUS' claims to be invalid. Barring a strong and credible defense to each claim that is infringed, they should settle. Otherwise they will surely lose in Federal court.

If RAMBUS does encounter a credible defense to the infringement of one of their claims, I would expect RAMBUS to drop that claim. The problem is that RAMBUS has 90 issued patents and hundreds of claims, so that even if a few of the infringement claims drop others will likely stick. So the prospect of these companies escaping the patents is extremely remote.

Only one claim has to be infringed for RAMBUS to win in court and there are hundreds of RAMBUS claims.

JK
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