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

To: Scumbria who wrote (45179)	6/20/2000 2:07:00 AM
From: Dave B	Read Replies (1) \| Respond to of 93625

Scumbria, 15% of SDRAM profits for the tiny piece of Rambus IP, does not strike me as very practical. Given a 1% royalty rate, the DRAM manufacturers can figure out exactly how much the royalty will cost them. Then they can figure out how much it will cost to change their designs to not include the Rambus IP (and get the rest of the industry to change as well, if necessary) and weigh the two against one another. In the end it'll be a fairly simple calculation. Then they can make their decision as to what to do. If 27 companies come to them claiming IP royalties, they'll just repeat this process 27 times. Again, it's just one (or 27) out of 50,000 decisions that have to be made every day. They'll figure out what to do and move on. It just isn't that big of a deal. Dave