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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 93.92-1.6%2:15 PM EST

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To: Dave B who wrote (54012)9/19/2000 2:32:19 PM
From: Scumbria  Read Replies (1) of 93625
 
Dave,

You are missing the point. Rambus claims royalties for memory controllers, which are a small part of the system.

Assuming the validity of Rambus IP stance:

If a $15 memory controller is included in a $2000 computer, should Rambus collect royalties based on the $15, or the $2000? Obviously the correct answer is $15.

The trend in electronics is to integrate more and more functions onto a single die. It is nonsensical for Rambus to claim royalties on other IP residing on the same die as the memory controller. No court is going to allow them to extract royalties based on the entire SOC cost, because Rambus best case scenario includes only a small portion of the total SOC IP.

Scumbria
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