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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 110.62+2.7%Nov 10 3:59 PM EST

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To: chic_hearne who wrote (51622)8/29/2000 5:03:11 PM
From: Zeev Hed  Read Replies (3) of 93625
 
I do not think you hit it right on this one, if RMBS patent's claims include the wording " a memory system including ..." or "communication links between memory systems and other devices including..", and the "including" is used in either, that is it, they can claim whatever royalties the market will "accept". The royalties rate of 2% already factors in the fact that these systems use other IP. Typical royalties run at the 5% rate, and in the biotech fields, I have seen royalties rates in the 8% to 12%. As long as they treat different competitors "more or less" the same way (without giving any one an undue advantage, and it is quite common and acceptable to give "first adopters", such "undue advantages"), there is no ground for "unfair trade practices", antitrust complaints would be funny in a case like this, when the company offers to every willing licensee a license.

It is quite common when providing non exclusive licenses (and RMBS' are non exclusive) to treat different entities that came to the "table" at different times different terms (and worsening terms as the time passes, particularly if the reason for time passage can be laid at the door of the potential licensee), and this would still be within the framework of "treating competitors equally". The rational is simple, early adopters took a greater risk adopting the technology than later adopter and thus are treated "beneficially". Naturally, since DDR may came to the table last, higher royalties rates would be the norm, not the exception.

Zeev
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