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Technology Stocks : SILICON STORAGE SSTI Flash Mem

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To: Art Bechhoefer who wrote (1788)8/30/2001 9:17:56 PM
From: docpaul  Read Replies (1) of 1881
 
<<On the patent application date--that's an important date because it means that if someone else has a similar device and applies for a patent AFTER that date, the Patent Office may deny certain attributes on the grounds that those same attributes are covered by the earlier patent (i.e., what they call "prior art"). One of the things the patent applicant tries to do is get as many attributes approved as possible. The more attributes, the more likely that later patent applications for similar stuff by others will be limited to attributes not already approved in the earlier patent application. This increases the likelihood that a later patented product may still require its owner to get a license from the owner of the earlier patent.>>

Hah.. ok! Eureka.. lightbulb turns on. :) Can we apply this concept to another example I've been watching?

Here's the patent:

patft.uspto.gov;

United States Patent 6,148,354
Ban , et al. November 14, 2000
Architecture for a universal serial bus-based PC flash disk

Abstract
A storage unit made of flash array and a USB controller, is implemented to be compatible with then USB specification. The unit includes memory modules which can accept write commands and read commands and are erasable and non-volatile herein referred to as flash modules. The USB/flash controller is configured to provide USB functionality and compatibility alone with common flash operations such as programming reading and erasing the above mentioned components.

--------------------------------------------------------------------------------
Inventors: Ban; Amir (Ramat Hasharon, IL); Moran; Dov (Kfar Saba, IL); Ogdan; Oron (Jerusalem, IL)
Assignee: M-Systems Flash Disk Pioneers Ltd. (Tel Aviv)
Appl. No.: 285706
Filed: April 5, 1999


This patent is the crux of a very large portion of the potential future profit stream for FLSH, another flash company.

The device is something called Disk-On-Key (http://www.diskonkey.com) (pardon if you already know the background).. and as you can see, the patent was applied for back in April of 1999. Now, if a competitor would make attempts to patent a similar technology after that date, they might fail to get a *patent*, but if a company released the same product before the patent was released, FLSH would have little to protect them from that, unless the product was developed after November 14, 2000?

In reality, what's happened is that there are 4 and 5 other companies besides M-Systems that have created a similar product (give or take a few features), but it's pretty apparant that they were formally announced/produced prior to that date.. and many investors have argued that because of the patent they can go and sue those companies..

From what you're saying, that doesn't hold true.

<<Getting back to SSTI, if it is true that SSTI can make a NOR flash chip that will handle large image files at great speed and retain the reliability that is attributed to NAND flash, then two events should occur rather soon: (1) Flash memory will become so inexpensive that it will replace all but the largest conventional magnetic disk drives. (2) NOR flash will be a low cost substitute for NAND, forcing the producers of NAND units to drop their prices. Somehow I don't think this last notion is accurate, but more likely NOR will be used only in certain applications.>>

Well, it's blatantly clear that most of all of SSTI's product knowledge is NOR based, but if you really look closely at the Agate patents (the company that SSTI acquired, they seem to reference NAND based memory). My thought process is that SST has been working to evolve the special manufacturing and design aspects of SuperFlash, currently an inherently NOR based process, to NAND type memories. Because when you really look at SuperFlash, it's strength is more in the manufacturing process and the split-gate design, both which seem to be transferrable to other flash designs.

Your scenarios are interesting, and they remind me of some press comments I saw out on the web recently:

eetasia.com

Under the terms of the agreement, Nanya will serve as a foundry for SST's 0.25µm and 0.18µm Flash memory products based on SST's SuperFlash memory technology. Initial wafer production is expected to begin later this year at Nanya's facilities in Taoyuan, Taiwan. Nanya, which is focused on the DRAM production and memory foundry business, will process SuperFlash as the sole nonvolatile memory technology in its factories. The two companies will also work together to jointly develop application-specific Flash memory products with densities comparable to DRAM for mass storage or computer main memory applications.

This undercurrent of computer DRAM replacement initially didn't make sense to me b/c of the price discrepancies between the two products. If you think about it though, there might be some real application to the replacement of DRAM with Flash... think of the saved boot time alone? You could always turn your computer on and start off right where you left.. Neat, I have to keep festering on this some.. I appreciate the stimulating discussion. :)

all the best, docpaul
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