<<The "good news" for AMTX? well, it's a win for standards-based DMT, indicating again that ALA will be signing a licensing agreement with AMTX and that royalties will accrue to AMTX.>>
A few points to remember:
* AMTX does not have a patent on DMT. DMT is in the prior art and not patentable.
* AMTX only has patents on some tweaks on DMT. Nobody knows what the heck they are, or how much they are worth. Nor is Amati confident that they will get any licensing as per S-3.
* Competitors can offer DMT w/o paying Amati
* US patents are not enforcable outside US
* Many of the so-called "Amati patents" are actually patented by employees of Stanford U. and are properties of Stanford U. Why Amati investors think they can get a cut is beyond me. But one thing is certain, they have just read the hype, hype, hype..., but not the fine prints in the S-3, 10-k, etc...
* If there is any royalty, it will be small. This is the condition for Amati's patents to be part of the standard. How small? Take a look at Qualcomm and figure out how much it makes from its CDMA patents.
Still, I agree it's "good news". It pops up new false hope, keeps up the suspense, and tommorw will be wonderful. Or not. Investing in a risky business is as simple and certain as growing wheat, or whatever.
The eternal optimist, and I am trying to be polite here, should hereby be commended for her year plus long track record, dating back to the good old days of AOL, of impeccable consistency: She never discloses the risk factors, and everything must be a far-fetch beyond imagination. In the case of growing wheat, the risk factors not disclosed are flood, drought, and other acts of God, which will surely ruin your day dream.
But never mind. Dream on. Your candy has not been taken. It may be a bit smaller. But it could be a million bucks tomorrow. Or not.
Charles |
