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Technology Stocks : Ascend Communications (ASND)
ASND 202.23-4.2%Dec 2 3:59 PM EST

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To: Dr. Doktor who wrote (10121)8/29/1997 9:58:00 AM
From: Chris S   of 61433
 
To all

I have seen various/numerous references to this 56K standards problem and also to the individual (Townsend?) who claims to have a patent on the technology. Frankly, I don't know what to make of this and how significant it really is to the profitability of asnd. I understand that the absence of 56K standards may slow sales of this product in the near term as buyers may want to wait until interoperation of technolgy they are buying is assured (IMO, not a particularly big deal to a long term investor). What I do not understand is the significance of the patent claim by Townsend. Does this mean that he will be suing asnd et al for (back) royalties and will cut into future profits and if so how significant is this to the overall business of asnd? I thought I read something on the COMS thread that indicated that COMS already had a licence agreement with Townsend (can anyone confirm) and does this mean that COMS's use of the technology and impact on future profits is more secure? Any comments to help me understand this issue further would be greatly appreciated.

Chris S
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