Patent Problems for Intel?
Steven Fyffe
Aug 25, 2000 --- Intel could end up owing alimony money to Rambus, whether they break up or stay together.
If Rambus’ patents for SDRAM and DDR prove to be valid, Intel will have to pay up just like everybody else, said Mark Edelstone, semiconductor analyst for Morgan Stanley Dean Witter.
“The bottom line is that Rambus has patents that they need to enforce, and you can't selectively enforce those,” Edelstone said. “They will be collecting tremendous royalties, which cover the entire DRAM space post-EDO, and will also cover the logic portion of the business.”
Morgan Stanley Dean Witter presided over Rambus’ 1997 IPO, and Securities and Exchange Commission filings lodged at the time cover the deal with Intel in excruciating detail.
The only thing that could save Intel would be a cross-licensing deal with Rambus. That doesn’t exist, according to Edelstone.
“I don’t believe that Rambus has licensed anybody in a broad way like that,” he said.
Intel refused to comment.
“We don’t comment on analysts' speculation or analysts' reports,” an Intel spokesman said. “We’re not in the business of providing legal interpretation of contracts."
Rambus said there was no need to even talk about the prospect of suing Intel … yet.
“There hasn’t been a need for us to even speculate, and I won’t speculate,” said Avo Kanadjian, vice president of worldwide marketing at Rambus. “We have what I think is a great relationship with Intel.” |
