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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 92.00+1.6%11:22 AM EST

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To: anandnvi who wrote (55165)9/26/2000 12:25:55 AM
From: Dan3  Read Replies (2) of 93625
 
Re: Can someone explain what "arbitration" means in the legal context?

Unless it's binding arbitration, it doesn't mean all that much. The two sides will present their case, informally (relative to a full trial) in front of an arbiter or panel of arbitors. If either side doesn't like the results, they still go to trial in a regular court.

If it's binding arbitration (which is always called "binding arbitration") the two sides contract to abide by the arbiter's decision, and give up the right to take their case to court.

Arbitration is cheaper than all out litigation, IMHO, this is a sign that Hyundai wants to stall the case and that Rambus needs to reduce its legal fees. Hyundai stays out of any high stakes court cases until it has time to see which way the wind is blowing and Rambus has one fewer full trial to fund.

And maybe the two firms will come to some kind of an agreement. A tenth of a percent as a royalty would still be a ton of money for Rambus, and it might be worth that much to Hyundai to make this aggravation go away until the next generation of (guaranteed Rambus IP free) memory is out in 3 years.

Dan
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