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

To: Ausdauer who wrote (5492)	4/19/1999 3:47:00 PM
From: Art Bechhoefer	Respond to of 60323

Aus, remember that there are several risks of going to trial, which Lexar may not want to take. First is that damages keep piling up, with interest, the longer that Lexar infringes the patent. Second is that a court or jury could find that Lexar intentionally infringed the patents, which provides a basis for treble damages. Because the judge has given an opinion before trial that SanDisk might prevail, Lexar will be thinking long and hard about whether it wants to incur the extra liability from an unfavorable decision. That's why Lexar may be interested in settling in a hurry. One more point, trials are expensive. A trial decision in favor of SanDisk would include compensation not only for infringing the patent but for all the legal fees. Thus, there's a great deal of incentive to settle before, not after the trial begins.