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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (44902)	6/18/2000 3:35:00 PM
From: Dan3	Read Replies (1) \| Respond to of 93625

Re: If they are all paying the same small royalty... That's the problem - Rambus is very greedy. Net profits on DRAM in it's various incarnations over the years have averaged around 7% (from the estimates I remember, but I don't have a link - maybe someone can do better). Rambus wants about 1.5% of the price of the product which is 20% of the profits. There are thousand patents which apply to the manufacture of DRAM. Each of the producing companies hold hundreds or thousands of these patents and they all cross license to each other. Rambus has a handful of patents but since they don't make anything they don't need to cross license. They are almost entirely parasites on the industry but want 20% of the profits - so the incentive to find a way to stop them or get around them is enormous. If rambus were to reduce it's licensing fees by an order of magnitude they might be a lot better off. Regards, Dan