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

To: GVTucker who wrote (51766)	8/29/2000 3:25:59 PM
From: Barry Grossman	Respond to of 93625

CNBC's Tom Costello just reported the Rambus/Micron story and he reported it similarly to the WSJ story below. He said that he talked to Mark Edelstone who said that this suit was "No big deal for Rambus." He said that Mark said that Micron realized it was going to be sued by Rambus so took the initiative by suing first. Costello also said he's talked to several other analysts about this and they said "pretty much the same thing that Edelstone said." interactive.wsj.com August 29, 2000 Micron Tech Sues Rambus, Alleging Antitrust Violations By DONNA FUSCALDO Dow Jones Newswires NEW YORK -- Shares of Rambus Inc. fell Tuesday on news that Micron Technology Inc. filed a lawsuit accusing the company of violating antitrust laws. In a news release late Monday, Micron said its lawsuit, filed in U.S. District Court in Delaware, also asserts invalidity, noninfringement and nonenforceability of certain Rambus patents. Rambus Chief Financial Officer Gary Harmon said he couldn't comment on the lawsuit because the papers have yet to be served. He did, however, attribute Tuesday's stock decline to the litigation. After falling as low as $76.25, Rambus shares were at $78.38, down $5.63 on the Nasdaq Stock Market. Rambus is no stranger to lawsuits. The company has been on the offensive in protecting its intellectual property and has taken such companies as Hitachi Ltd. and Toshiba Corp. to court claiming patent infringement. Rambus True Believers See Their Chip Come In (June 23) Both companies have since signed licensing and royalty agreements with Rambus. "Rambus wants to enforce their patents that impact all types of current memory technology, not just RDRAM," said John Stanish, an analyst at Arcadia Investment Corp. "If Rambus patents are valid and enforceable, all memory makers need to pay Rambus royalties on every type of DRAM currently being produced." Mark Edelstone, an analyst at Morgan Stanley Dean Witter, said Micron Technology realizes it will get sued by Rambus and is stepping up and taking the initiative. The fact that Micron filed a suit against Rambus isn't a big deal, said Mr. Edelstone. The court case, however, will be meaningful because it will set the stage for who has to pay royalties, he said. If Micron was able to prove the patents were invalid, then no one would have to pay royalties, Mr. Edelstone said, adding that it's "pretty hard" however, to invalidate a patent. "Someone who is attacking a patent and wants to prove otherwise must establish that by clear and convincing evidence, which is a heavy burden of proof," said Jonathan Marshall, senior partner at Pennie & Edmonds. Clear and convincing evidence is a legal standard more stringent than what is required in a civil case but less than a criminal case. Officials at Micron weren't immediately available for comment.