WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 157.83

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2:11 PM EST

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To: Ausdauer who wrote (3133)	5/29/1998 1:25:00 AM
From: Craig Freeman	Read Replies (4) of 60323

Ausdauer, you can relax. The deal with Lexar is complicated but IMHO it boils down to an argument about the AMOUNT of royalties. SNDK wants Lexar to keep on marketing and selling Compact Flash cards because eventually they will collect a ton of royalties. When you have no debt and lots of cash, you can afford to wait for 100% instead of settling for less! If SNDK really wanted to shut Lexar down, all they would have to do is show some of the Lexar cards to a judge and let him read the labels. Both "CF" and "Compact Flash" are registered trademarks and Sandisk ONLY licenses those trademarks to companies that use royalty-paid flash memory. In cases of obvious copyright infringement, it can take as little as a week or two to get an injunction. As digital cameras grow in popularity, you may see lots of "private label" cards at places like Ritz, Walmart, Best Buy, etc. You may never know who actually manufactured the product but you can be sure than Sandisk is making some money on every sale. Craig

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