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

To: Michael A. Gottesman who wrote (11568)	5/27/2000 7:33:00 PM
From: Ausdauer	Respond to of 60323

Mike G., As usual, excellent detective work and thanks for the postulation. It is great having in-house counsel on The Thread. [For those who don't know, Mike was the first person to learn of the SanDisk legal victory against Lexar a few weeks ago. Apparently the court proceedings/documents appeared on the on-line service before the snail mail from the court arrived at the offices of either the Plaintiff or the Defendant.] Seems like the pace of the suit is quickening. The market's current softness nearly guarantees the Lexar Media IPO will not happen anytime soon. I am sure that SanDisk will continue the "full-court press" (pun intended) given SanDisk's financial health and the strength of their defense. Patent nullification is reportedly a difficult burden of proof for Lexar, especially because the disk drive emulation patents and their related nuances are not new. They have "stood the test of time". I will be interesting to see just how far Lexar Media is willing to stretch its limited financial resources (based on their current cash flow) and engineering talent in pursuing the case. An out-of-court settlement and a final negotiation of licensing fees would seem to be a sensible solution. Perhaps SanDisk is no longer willing to negotiate now that they have been afforded the partial summary judgement? In that case it serves Lexar Media right for pushing the case to this point: that is, the point of no return? Ausdauer