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Technology Stocks : WDC/Sandisk Corporation
WDC 138.38-1.3%2:49 PM EST
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To: Ausdauer who wrote (16094)10/26/2000 3:58:44 AM
From: Craig Freeman  Read Replies (3) of 60323
 
Ausaduer, once again you have provided a crystal clear synopsis of the facts and yet kindly opened the topic for comment.

IMHO, SNDK knew that they they had a lock on CF from the start. So ... they decided to promulgate a new standard.

Knowing that they would eventually own all the related IP. they decided to give away part (but not all) of their proprietary IP so as to quickstart the CF group. The price that SNDK paid was to lose complete control over their innovation in exchange for reasonable (perhaps too reasonable) royalties. In the end, the only participant to complain has been Lexar -- leading one to believe that others thought the exchange to be fair.

Nobody here has mentioned the fact that SNDK could have chosen to keep the whole market to themselves. Nowhere in the U.S. Patent regs will you find anything about a patent holder being REQUIRED to license their works to anyone -- at any price. Heck ... the drug companies are famous for holding onto their patents until they expire -- keeping everyone else from producing a similar product.

Unless the "national interest" is affected during wartime or the withholding of a patent results in measurable harm to life and property, the courts have consistently held that the rights of a patentholder are absolute and inviolable. None of these exceptions apply to Lexar's desire to provide an alternative source of digital film. Simply put, Lexar is SOL.

Craig
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