To: Estephen who wrote (48151 ) 7/28/2000 10:25:49 AM From: Estephen Respond to of 93625 Oki, Rambus Sign License Accord on 2 Memory Standards (Update1) By Alan Patterson and Minoru Matsutaniquote.bloomberg.com Mountain View, California, July 28 (Bloomberg) -- Rambus Inc. signed an accord under which Oki Electric Industry Co., agreed to pay royalties for patented Rambus technology it is already using to make chips. Oki, a Japanese telecommunications equipment maker, is the third company to sign such an agreement with Rambus this year, following Toshiba Corp. and Hitachi Ltd. Rambus declined to say how much it expects from the royalties. ``These important Rambus patents are necessary for current and future memory and logic products,'' said Masayoshi Ino, Oki Electric managing director. The Rambus agreement with Oki involves designs for synchronous dynamic random access memory, or SDRAM, and double data rate, or DDR, which Oki uses to make memory controllers and other semiconductors. Royalty rates for DDR-SDRAM and DDR controllers are greater than those for Rambus DRAM, a memory standard the Mountain View, California, chip-design company developed to increase processing speeds. Toshiba and Hitachi have agreed to pay Rambus licensing fees for its patented computer memory chip designs in agreements similar to that reached between Rambus and Oki today. Rambus sued Hitachi in January, accusing Japan's No. 1 electronics maker of violating Rambus patents. Hitachi has agreed to pay Rambus an undisclosed settlement fee as well as quarterly royalties. Standards Standoff For years, Intel Corp., the world's largest chipmaker, has endorsed Rambus as the only memory standard that will enable computers to do high-speed processing for digital consumer electronic equipment such as camcorders. Intel two days ago ended its exclusive endorsement of Rambus, when the company said it will support the SDRAM memory standard in addition to Rambus DRAM for its Pentium 4 processor. Intel said that it will make a chipset for its Pentium 4 processor supporting SDRAM. Chipsets are semiconductors which link a processor with other parts of a computer such as memory and the display. Intel yesterday said that it may make Pentium 4 chipsets which support DDR-DRAM chips as well. Intel did not disclose whether it will need to sign a license with Rambus for the SDRAM chipset it plans to produce next year. Rambus DRAM chips have been expensive to make and currently represent about 5 percent of total memory production. Most memory chips in the marketplace today are based on the SDRAM standard. The Intel Pentium 4, scheduled for introduction later this year, will need large volumes of memory chips to support its market debut. Industry analysts for this reason have predicted that Intel would be forced to endorse the mainstream SDRAM standard.