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

To: Dan3 who wrote (72742)	5/13/2001 3:27:45 PM
From: NightOwl	Respond to of 93625

Dan3, The thing I found interesting about that article was this comment by Samsung source: However, sources close to Samsung said the company's SDRAM royalty payments are much less than 3.5%. One source said that, like most licensing agreements, Samsung's royalties have a sliding scale that allows rates to be reduced as chip production increases. The final payment is also adjusted to offset factors such as engineering work Samsung may have performed for Rambus. I have a tough time understanding what "engineering work" Samsung could be doing for RMBS on DDR, but if I read this correctly Samsung has to up its DDR production in order to reduce the 3.5% royalty hit. Now why do I have such a tough time believing that RMBS would offer a DDR license at 3.5% to discourage production, while at the same time inserting a clause to encourage max production in order to reduce the unusually high royalty lug? <Ha Ho 8-> 0\|0

To: Dan3 who wrote (72742)	5/13/2001 4:58:21 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 93625

Thanks a million! I can't believe I missed that despite having read the article...must be getting old. I have two questions now: First, does anyone know which day the judge will render his decision? This is of course important as it will cause large swings in RMBS one way or another. Secondly, I've heard varying opinions as to what is the effect of losing the disputed patents. Obviously it means no SDRAM royalty, but does it also mean zero DDR royalty? There seems to be unanimous decision that RDRAM will remain the domain or Rambus. But could losing the patents mean that others may now create a more formidable alternative to RDRAM (I mean other than DDR)? On the other hand, let's say the judge rules in favor of Rambus in this case. What would that mean? That Infineon does not have to pay royalties but others do? Or that none of the original JEDEC members will have to pay the royalties but all others do? It is important to assess the best and worst case outcomes (over the next couple of months) if there is money to be made in this thing. thanks, ST