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

To: Zeev Hed who wrote (51795)	8/29/2000 5:20:09 PM
From: Scumbria	Respond to of 93625

Zeev, Typical royalties run at the 5% rate, and in the biotech fields, I have seen royalties rates in the 8% to 12%. I assume that you are talking about products developed by the company receiving royalties. Rambus did not develop SDRAM. They believe that they have some patents which SDRAM violates. SDRAM uses hundreds, or thousands of patents owned by dozens of different companies. Whatever IP Rambus does or doesn't own relating to SDRAM, is just a small piece of the total IP pie. If Rambus royalty demands were believed to be in line with their worth, there would not be any argument from the DRAM manufacturers. I expect Rambus management will eventually accept much lower royalties than they are publicly crowing about, or will just take a cash buyout and go away. Scumbria

To: Zeev Hed who wrote (51795)	8/29/2000 8:26:01 PM
From: Dan3	Read Replies (1) \| Respond to of 93625

Re: I do not think you hit it right on this one, if RMBS patent's claims include the wording " a memory system including ..." One of Micron's arguments is that the Rambus patents are subsumed by earlier Micron patents that include similar language. As long as Rambus was interpreting its patents as being limited to devices in the specific configuration that is RDRAM, the more general Micron patents weren't relevant. Now that Rambus has rescoped their patents, the earlier Micron patents become controlling, and Rambus may find itself with little remaining IP. Before this is all over, it may turn out that Micron could produce RDRAM without paying royalties to Rambus - if they ever wanted to. Dan