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Technology Stocks : WDC/Sandisk Corporation
WDC 163.61+2.2%Nov 6 3:59 PM EST

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To: AB who wrote (5663)5/7/1999 5:51:00 PM
From: Ausdauer  Read Replies (2) of 60323
 
Anthony,

I don't see how the USB option enhances the functionality of a CF card given it is already plug-and-play and parallel port connections give very adequate transfer rates currently. Also, ImageMate is also available in a USB form. Essentially the Lexar product eliminates the need for a bulky connector. Just a simple USB cable with an adapter on the end would be required.

I ask you...

Do you find the ImageMate bulky? A PCMCIA card adapter bulky?

I sincerely doubt that SanDisk would trade the core card level patents so vital to CompactFlash for a gimmicky USB connector. It is ludicrous in my opinion.

There are also inconsistencies in the article. For example, if there is a settlement forthcoming then there is no need for a trial. Therefore I find Mr. Reimer's remarks confusing...

The case is still in court. Lexar's Reimer said, "We just completed claim constructions a few weeks ago, and we are now moving into the mutually agreed-upon settlement discussions before the trial begins." Reimer indicated that Lexar might use its USB-enabled CompactFlash technology as a "trade" in those talks.

I suspect that SanDisk will ask for a monetary payment per card sold. I understand that 7 to 12% of wholesale may be a reasonable licensing fee. It is either a payment like that or you take your product off the shelf. I mean, SanDisk is going to play hard ball.

Does anybody have an idea about this figure? It could amount to $3 to $10 dollars per card depending on the card capacity.

Lexar should have settled before SanDisk licensed proprietary controller technology from SSTI. That was a huge mistake. Potentially fatal, IMHO.

DON"T FORGET TO REMIND MR. REIMER TO BRING A DIAPER CHANGE TO THE SETTLEMENT TALKS.

Ausdauer
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