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Technology Stocks : McData (MCDT)
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To: Douglas Nordgren who wrote (71)9/20/2000 3:42:28 AM
From: Gus  Read Replies (2) of 234
 
I'm hard pressed to think of any company that has made money in the storage business through royalties. Odetics was probably the last one to do so at the expense of Storage Technology and they had to go to the CAFC (appeals court) to appeal a jury verdict and award of about $80 million that was overturn by the district judge, if I recall correctly. Patents are strategic, but storage companies tend to settle most of their differences in the marketplace. By the way, you do mean Inrange's fibre channel products ONLY, don't you? As far as I know, IBM retains full ownership of all ESCON and FICON patents; although, those patents are available to the likes of McDATA, Inrange and CNT, which bring their own crossbar switch technology to the table. IBM does have one of the most lucrative royalty licensing program in all of technology -- over $1 billion in royalties annually, if I'm not mistaken.
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