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Technology Stocks : WDC/Sandisk Corporation
WDC 139.09-0.8%Nov 21 9:30 AM EST
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To: Art Bechhoefer who wrote (20150)4/19/2001 7:10:22 PM
From: Ausdauer  Read Replies (2) of 60323
 
Art,

Samsung-Lexar Pact

Isn't it possible that Samsung was in talks with SanDisk,
didn't like the terms of the agreement, balked and decided to
sign a license with Lexar Media instead? Seeing that SanDisk
has acknowledged the Lexar Media work-around I find it hard
to believe we will benefit in any way from this pact.

Lexar Media has been agressive about seeking licenses. I posted
earlier about 4 CF card assemblers that have been sued by Lexar
Media during 2001. Most of these are third tier producers that
are not insulated from Lexar Media because they don't use the
standard Hitachi C-series controller. I suspect, but cannot prove,
that SanDisk has been collecting some kind of royalty for the
Hitachi product, but has never formally announced it. The logic
behind keeping something like this quiet could be related to some
hope of getting a second license '987 from card assemblers themselves
in addition to whatever has been arranged between SNDK and HIT.

In many ways Lexar seems to be executing their licensing
strategy in a much more open and successful way than SNDK.

"Lexar Media is extremely pleased to enter into this license agreement with Samsung Electronics," said Eric Whitaker, Lexar Media's Vice President of Technology Licensing. "Samsung becomes the third licensee of Lexar Media's patents. Sony was the first licensee of Lexar Media's technology for adaptation in Sony's Memory Stick format. SanDisk was the second licensee of Lexar's patented technology for the production of Smart Media products. Samsung's license covers SmartMedia as well as other flash products. We are pleased that Samsung has recognized the value of Lexar Media's patents in producing flash-based products."

P.S.

I still have not mustered the courage to listen to the c.c.

Aus
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