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Non-Tech : Amati investors
AMTX 1.690+2.7%Nov 26 3:59 PM EST

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To: Bill Pearson who wrote (18669)5/29/1997 9:50:00 PM
From: SteveG   of 31386
 
<ANSI compliant!>Thanks Bill, but this really isn't a good day for this...

But seriously, I think the following is a possible scenario:

The only part of the ANSI standard that Amati owns a patent to is that for tone (or bit) swapping. And there is a requirement as a condition of getting the standard for Amati to make this patent available at a *reasonable* and *non-discriminatory" cost.

I think that early on (as we continue to hear), Amati tried playing hard ball (by requiring huge prepayment dollars from potential licensees, including ADI). In the meantime, realizing it might need a great quantity of chips, Amati cut a sweetheart deal to MOT (ie., NO big dollars.. but some preferential treatment in chip supplies from MOT.)

Now MOT has STILL not shown up for the date, and everyone who Amati talks to asks.. "do you have chips at a reasonable price?" With LSI as their current source for their field trials, they do not. And they had pissed off ADI (and a lot of others) with their excessive demands..

Realizing their predictament, Amati came to their senses and licensed to ADI (as Pat has told us she understood they had or would soon be doing) the one ANSI standard patent. Since ADI is the manufacturer, THEY are the only ones who have to license this patent (not Aware or USRX, etc). Then in conjunction with Aware's engineers, the REST of the line code was worked out into their chipset.

So for all the public histrionics (eg., ADI's comments to Pat at a conference about licensing), Amati would license on ADI's terms, but on the condition that details not be made public.. (perhaps to not irritate Amati's other licensees/partners who may have thought they had gotten a good deal, but not this good).

So now we have true ANSI standard compliance at ADI.

Note: This is just my conjecture based on a few facts and some gut sense.


Regards-

Steve
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