WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 157.75

+0.4%

3:59 PM EST

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To: Craig Freeman who wrote (3134)	5/29/1998 6:39:00 AM
From: Ausdauer	Read Replies (2) of 60323

Craig, My understanding is that the CFA (CompactFlash Association) allows members who pay dues and follow the CFA guidelines for interconnectivity/compatibility to display the CF logo. In that way the standard can gain wider acceptance with a larger number of design-ins, deeper market penetration and greater end-user recognition and acceptance. The CFA does not require chip manufacturers to follow Sandisk's recipe for CompactFlash and it would be possible to design around some of the patents and avoid paying royalties. The 10Q suggests that this is plausible. I do not think the CFA was created to guarantee royalty payments to Sandisk. The point is, I really do not understand the arrangements and nobody has been willing to explain it to me. Royalty and licensing arrangements are confidential and therefore you get stone walled if come anywhere near that subject to management. I think it wouldn't be a breach of confidentiality to at least mention plans to seek royalty payments from independent producers that may be bootlegging SNDK technology/intellectual patents. By the way, I forgot to mention PNY as another CF distributor. That brings my unofficial tally to 6 companies.

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