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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 9:30 AM EST

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To: jcholewa who wrote (28724)2/15/2001 11:46:49 PM
From: milo_moraiRead Replies (1) of 275872
 
"AMD reportedly is offering "practically free" licenses to companies willing to adopt the technology, according to industry analysts.

While AMD declined to disclose details about licensing fees, a spokesman hinted that the company is currently more focused on shoring up support for its new technology than generating profits.

"It is not necessarily royalty free," said Drew Prairie, a spokesman for the Sunnyvale, Calif., company. "But we want broad industry acceptance, and we will do what it takes to ensure that."

While low-cost licensing would certainly make AMD's technology more attractive to potential buyers, it also may spell trouble for makers of rival high-speed serial connects, said Nathan Brookwood, principal analyst of Insight 64 in Saratoga, Calif.

"HyperTransport has certainly been gaining momentum," Brookwood said. "But if they're licensing it on a royalty-free basis, that's going to pose a problem for folks who were planning to collect rent on similar-type technologies."

But AMD's low-price licensing offer will probably be available only for a limited time, analysts said, as the chip maker will likely raise its fees should the technology establish itself as an industry standard."

taken from zdnet.com

Looks like we could get some money for LDT long term.

Milo
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