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

To: richard surckla who wrote (59727)	11/1/2000 11:16:29 PM
From: Dan3	Read Replies (3) \| Respond to of 93625

Re: In the end they will all bow and pay... You don't get it, there are at least a dozen companies with patent suites in the RAM chip domain that dwarf what Rambus IP consists of. If the Rambus business model is successful, it will be duplicated, and leave Rambus with crumbs. If a dozen companies, including Rambus, present the demand that the thousands of relevant patents they control all be licensed before any of them allow any RAM to ship the issue of royalties will become a messy legal battle. If Rambus's IP is worth 3% of the sales price of a DIMM, then Micron's is worth 50% of the sales price and so is Intel's and IBM's and AMD's and Samsung's and Infineon's and Texas Instruments's etc. They are each entitled to 50% of the sales price. But there are only 100 parts in a hundred, in a hundred. So, even if every aspect of Rambus's strategy works and they win every case, they will still face having their claims reduced to a tiny fraction of the 2% to 3% that they keep boasting about. If the industry can be convinced that an attack like this will never happen again, they might pay (but certainly not 3%). But there can be no such guarantee, so if Rambus business plan starts to look successful, the industry will have to change the way it deals with patent holders so that they don't face similar demands for 20% of their profits from each of a hundred little companies. Dan