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

To: Scumbria who wrote (51687)	8/29/2000 10:36:29 AM
From: spliff	Respond to of 93625

Edelstones comments... Rambus (RMBS-$84-SB) Micron Files Lawsuit Against Rambus Mark Edelstone· Micron Technology (MU-$89-SB, covered by J. Cross) announced a lawsuit against RMBS making several assertions, including violations of federal antitrust laws, and the invalidity and non-enforceability of RMBS's patents.· Although we expected that RMBS and MU would eventually end up in court, we are surprised by MU's suit. We expected RMBS to eventually drive the legal challenge once MU would not license its (RMBS’s) patents. We would be surprised if there are any legitimate antitrust issues, and since patents are deemed to be valid until someone can invalidate them, MU will eventually need to prove that they are invalid during a legal proceeding.· We believe MU's legal action will clearly bring the issues surrounding the validity of RMBS's patents into the forefront. While a courtroom battle will create uncertainty, we continue to believe RMBS will prevail, and mgmt. has been quite clear they will not license any company they defeat in court. As a result, MU and Infineon (recently sued by RMBS) are involved in a high stakes game with very negative ramifications for their DRAM businesses if RMBS prevails.· We maintain our Strong Buy rating. Prior to the eventual court hearings from these legal actions, RMBS's mission and the near-term key to RMBS's performance is to successfully complete license agreements with other DRAM and logic interface suppliers.

To: Scumbria who wrote (51687)	8/29/2000 11:59:45 AM
From: Jerry Miller	Respond to of 93625

here's a comment off the Fool's board, that opens with a delightfully deceitful thought. <g "I've been thinking that the higher royalty being charged for DDR might be viewed as an attempt to guide the industry in collusion with the INTC roadmap rather than just an innocent attempt to collect on IP. If MU really has bet the farm on DDR, a higher royalty on DDR would seem to hurt their competitiveness in the memory industry beyond having the technology fail (or succeed) based on its own merits. By knocking down the royalty rate for DDR, they might be able to hold on long enough for someone to make a DDR chipset that actually works." 209.10.210.210