Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 94.16

+2.0%

1:36 PM EST

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To: unclewest who wrote (16303)	2/22/1999 11:39:00 AM
From: Zeev Hed	Read Replies (1) of 93625

uncle, paying Royalties displaces the development risks to the developer, a very cost effective way to get into new products. The fact is that these companies often spend 10% of sales on internally developed products, half of which never materialize. Look at Gillette, they spent a billion bucks (well, $400 MM was supposedly the launching marketing blitz) to add a third blade to their shaver. I am sure they could have done it for much less by going outside and outsourcing this development. OK, I am biased, I love royalties. it makes me feel "Rexial" (VBG). Zeev

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