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

To: john dodson who wrote (48230)	7/28/2000 11:11:45 PM
From: Dan3	Read Replies (1) \| Respond to of 93625

Re: _if_ RMBS does indeed ultimately sign deals with virtually the entire industry? I believe it to be very unlikely, and that the ultimate outcome in such a scenario would be the dissolution of the various cross licensing agreements presently in place. Micron, Samsung, Infineon, etc. (and INTC and AMD) would spin off IP only companies that would all run around blackmailing everybody. The result would be dozens of mini-rambuses each demanding royalties based upon the volume of relevant IP it held. Since rambus holds, relatively speaking, an almost infinitesimal number of patents, it would still be left with far less than the 1% or 2% of gross sales many here are expecting. But could the world's memory industry be forced into such a restructuring, for sales to the United States, at least? Of course it could. If it comes down to court settlements, bad Judges have made bad decisions in the past, and more such will certainly be made in the future. This is why some nominal payments have been made to rambus by minor players - it's cheap insurance, especially when warrants and options from rambus are used to reduce or eliminate any actual cost. But 1% or 2% of any significant gross sales in an industry with single digit margins? It will not ever happen for more than a quarter or two. Dan