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Technology Stocks : Synaptics
SYNA 70.14+3.4%Nov 5 3:59 PM EST
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To: HerbVic who wrote (20)2/11/2005 12:06:42 AM
From: Sam Citron   of 191
 
Hi Herb,

I believe that Apple has a patent-pending on the original ClickWheel. It's unclear to me whether Synaptics would be entitled to patents for the thin solid-state refinements that went into second and subsequent generations, if they were based on Apple's "prior art". Hopefully, Apple and Synaptics considered this potentially thorny issue and have already hammered out some sort of IP sharing agreement. Or else, they both may have applied for or been granted patents, and it could be left to the courts to determine the validity of such patents.

I'm simply wondering what leverage Synaptics might have if Apple wants Cypress to make the fifth generation iPod clickwheel. Can Synaptics, for example, retaliate by shopping a circular ClickWheel to Creative?

It seems likely that whatever degree of freedom Apple has to switch suppliers results from the pioneering work that it may have done in designing the first ClickWheel. Without this, there is no way that Cypress could design the next generation without infringing on Synaptics IP.

Have you heard of any dates being bandied about for the fifth generation iPod introduction?

Obviously there has been close collaboration between Apple and Synaptics design teams. I can't see how the lawyers could have missed the potential for conflict. Hopefully this is a special case and will not result in investors having to worry about the effective lifecycle of Synaptics other interface solutions.

Sam
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