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

To: Roads End who wrote (9647)	11/15/1998 11:20:00 AM
From: MileHigh	Respond to of 93625

Steve, I encourage all to get the '97 annual report- the '98 is not out yet and it will be a while. Although the actual royalty rates are not disclosed, it lays out a lot of details, such as; -"royalty rates range up to a maximum of approx. 2.5% for RDAM's and a maximum of approx. 5% for logic IC's, and in some cases may decline based upon the passage of time or on the total volume of the Company's ICs shipped by a licensee. The exact rate and structure of a royalty arrangement with a particular licensee depend on a number of factors, including the amount of the contract fee paid by the licensee and the marketing and engineering commitment made by the licensee" (from the '97 annual report) So, it is kind of like a "buy down" on a home mortgage- pay RMBS some points in the form of higher Contract Agreement Fees and we will give you a lower Royalty rate - But I agree, it is very murky water and as time goes forward, we do not know if Average Royalty Rates (ARR's) will be increasing at all. Regards, MileHigh