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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: drew_m who wrote (11168)	5/18/2000 7:24:00 PM
From: orkrious	Respond to of 60323

How's this for a straight answer: Yes, they compete. However, in the end, Sony is likely to end up with another Betamax. The memory stick will likely be around a little longer than the Betamax was, but in the end SNDK's open standard CF will likely prevail. Sony does pay royalties indirectly to SNDK on a flash patent, but at the moment there is no royalty on the complete package design. That may change. It is my understanding that the Lexar case, on which they have been granted a summary judgement, is about a patent related to the design of the complete package. This may apply to Sony and anyone else producing removable flash. Time will tell. I hope this is clear. The cabernet I'm savoring is going to my head. <VBG> Jay

To: drew_m who wrote (11168)	5/18/2000 7:27:00 PM
From: Rocky Reid	Respond to of 60323

>>ÿI cant seem to get a straight answer regarding Sony and SanDisk. Are they competing?<< The answer is yes, they are competing, but to what extent is unknown. Sony's Memory Stick is a proprietary format that has been very slow in being adopted by anyone other than Sony. Sandisk's CompactFlash, on the other hand, is an open Standard that has exploded in poularity and is EVERYWHERE. Sony reportedly pays a licensing fee to Sandisk because Memory Stick uses Sandisk Patents. The outcome of the Lexar Suit could also have further implications in this regard. Your simple answer is Yes they are competing. And if you want simplistic analysis, Sandisk is kicking Sony's ASS.