Compaq Message Board - Msg: 8324652

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Technology Stocks : Compaq

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To: JRI who wrote (53450)	3/15/1999 1:18:00 PM
From: John Koligman	Read Replies (1) of 97611

Hi John, I just saw your post and Rudedog's response. I was not aware of the 1% until also reading it as the deal unfolded. Since I have not read anywhere exactly what the 1% covers, I have no idea what they pay it on. Patent cross licensing is pretty common in the industry, and the tech heavyweights benefit due to their large portfolios. Even in the chip wars, AMD licensed Intel designs. AMD is also using the Alpha high speed bus design in their next generation of PC chips. Again, in Dell's case it would be interesting to see exactly what in their boxes requires the IBM royalty. When I have time I'll check out IBM's financial statements looking for the royalty info, but I suspect that they don't split it out and just provide a total figure, so it will not be of any help here. John

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