Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 101.61

+2.8%

Dec 5 9:30 AM EST

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To: NightOwl who wrote (49611)	8/13/2000 4:49:55 PM
From: Bilow	Read Replies (1) of 93625

Hi NightOwl; Re money losing companies paying royalties anyway... The Rambus royalties would only increase the price of memory slightly, so I really don't think they would have much effect on the industry. That would likely cause a tiny decrease in its use, as consumers choose alternative technologies (like embedded). Basically, the price of memory already fluctuates more than 2% almost on a weekly basis. The Rambus royalty, while extremely lucrative for RMBS really isn't terribly significant to the industry as a whole. Everybody will just raise their prices accordingly. But there is no question that engineers prefer solutions that do not involve the complications of royalties, so maybe Rambus picking up royalties from everybody who uses SDRAM will lead to a faster advance to the new non-Rambus solution that the Advance Memory people are working on. -- Carl

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