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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (3136)	5/29/1998 11:51:00 AM
From: Bargain Hunter	Respond to of 60323

The CFA does not require chip manufacturers to follow Sandisk's recipe for CompactFlash and it would be possible to design around some of the patents and avoid paying royalties. The 10Q suggests that this is plausible. I believe the wording in the 10Q has more to do with legal CYA than any real expectation that it will happen. But if it does happen they don't want any lawsuits claiming that they didn't warn about it.

To: Ausdauer who wrote (3136)	5/29/1998 5:36:00 PM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

Ausdauer, I stand corrected. I wrongly assumed that since SNDK formed the CFA and licensed their trademarks, they maintained significant control over the organization. Apparently, SNDK controls only one of many director seats and lacks the ability to directly determine who may or may not join the CFA. As such, you are correct that most anyone could join the CFA, produce products with infringing memory, and still legally utilize the Compact Flash trademark. A point of uncertainty involves the exact terms of the trademark license. If not perpetual, SNDK could use the license as a "hammer" to get its way. Otherwise, they are just one member out of many at the CFA. Craig