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

To: Dave B who wrote (57828)	10/16/2000 9:47:10 AM
From: GVTucker	Respond to of 93625

Dave, RE: Can an entity which does not yet legally exist sign a contract? I don't know, and it doesn't really matter that much to me. There is an agreement signed with Hitachi. Next year, Hitachi's DRAM business will be folded into a new joint venture. The question that I have continuously posed is that given this new joint venture, what value can be attached to the Hitachi agreement? Of course, any time I try to get a legitimate debate started on this thread on that subject, instead I receive rather silly comments that I am trying to be a spin doctor. Alternative methods of fact finding are much better when it comes to RMBS, leaving this thread with more entertainment value than informational value.

To: Dave B who wrote (57828)	10/16/2000 1:32:15 PM
From: jim kelley	Respond to of 93625

Elpida apparently does exist as a legal entity. However, it has no need of a Rambus license unless it is going to be manufacturing memory. So far it is not. Hitachi and NEC have not transferred their fabs to the joint venture. Hitachi and NEC will continue to pay their respective royalties on their memory and controller production until the manufacturing is transferred to the joint venture. A reason for a new license for Elpida would be to try to obtain the NEC royalty rate instead of the Hitachi royalty rate which is higher. Perhaps a compromise will be reached prior to transfer of manufacturing which will place the royalty rate somewhere in between that of NEC and Hitachi. Another, reason for negotiating a new license is to avoid the problem of royalty determination for transfer pricing between Hitachi, NEC and Elpida transfer. Confusing eh?