Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 105.01

-5.1%

Nov 11 3:59 PM EST

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To: Dave B who wrote (51903)	8/29/2000 11:47:21 PM
From: richard surckla	Read Replies (1) of 93625

Dave B... Thats exactly what Rambus wants...royalties on RDRAM, SDRAM and DDR. I think we all understand this. There are three Rambus patents that are in question here RDRAM, SDRAM, and DDR. Rambus is entitled to receive royalty rates from each one of them. If Micron wants to use SDRAM or DDR Rambus is saying you will have to pay more. Extra or excessive... same thing. You are paying more. According to the antitrust laws Rambus can charge what the traffic is willing to pay. From what I understand companies are allowed to self police themselves in what the charge in royalty rates as long as it can be determined as reasonable so as not to create a monopoly by price everything is OK. When the rates become excessive and complaints are made as with Micron then the court is obliged to make a determination. This is my understanding. I could be wrong. Phrophet says, "I will try this one more time. Nothing in the article you quoted refers to "excessive" royalty rates; the article mentions "extra royalties,"(YES I AGREE. BUT I CLAIM THEY MEAN THE SAME OR ARE BEING USED INTERCHANGABLY) which is a reference to the fact that all of these DRAM makers already have licenses to use RMBS patents in RDRAM,(YES I AGREE WITH THIS.) but do not have licenses, nor do they pay royalties, for use of RMBS patents in SDRAM and DDR. Hence, the term "extra" royalties."(YES, AND IN HIS OWN WORDS WHAT IS BEING PAID ON SDRAM OR DDR? NOTHING! IF NOTHING IS BEING PAID HOW CAN YOU HAVE AN "EXTRA ROYALTY?" YOU CAN'T, BUT YOU CAN HAVE AN EXTRA OR EXCESSIVE ROYALTY RATE IF YOU'RE BEING CHARGED TWICE THAT OF RDRAM.) This is where I believe Micron will make their argument that this is not a fair rate to charge. That paying twice as much for SDRAM and DDR is excessive (or by paying twice the amount is an extra amount) and is therefore is not a fair practice and the excessive charges are being made as a penalty. But I don't believe this argument will work for reasons that I won't go into at this time. I don't know Dave. Maybe I'm just trying to read into this too much? Maybe the Prophet is right?

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