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

To: AB who wrote (5663)	5/7/1999 4:42:00 PM
From: Sam	Respond to of 60323

Anthony, Good find, thanks for pointing out the article. <<SanDisk charged that Lexar is using its patented innovations in an attempt to unfairly appropriate some of SanDisk's business. The case is still in court. Lexar's Reimer said, "We just completed claim constructions a few weeks ago, and we are now moving into the mutually agreed-upon settlement discussions before the trial begins." Reimer indicated that Lexar might use its USB-enabled CompactFlash technology as a "trade" in those talks.>> Lexar is a pretty clever company. Cross licensing is a good way for them to get around their infringement problem, which this article implies they have. Given their apparent creativity, it would be nice if SNDK could just buy them.

To: AB who wrote (5663)	5/7/1999 4:59:00 PM
From: Art Bechhoefer	Respond to of 60323

Great story, Anthony. Thanks for the link. The last part says it all: A possible trade of USB technology in return for a settlement of the patent infringement case. SanDisk can be pretty tough on this one. After all, if the case goes to trial and a jury finds intent to infringe, there could be treble damages.

To: AB who wrote (5663)	5/7/1999 5:51:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Anthony, I don't see how the USB option enhances the functionality of a CF card given it is already plug-and-play and parallel port connections give very adequate transfer rates currently. Also, ImageMate is also available in a USB form. Essentially the Lexar product eliminates the need for a bulky connector. Just a simple USB cable with an adapter on the end would be required. I ask you... Do you find the ImageMate bulky? A PCMCIA card adapter bulky? I sincerely doubt that SanDisk would trade the core card level patents so vital to CompactFlash for a gimmicky USB connector. It is ludicrous in my opinion. There are also inconsistencies in the article. For example, if there is a settlement forthcoming then there is no need for a trial. Therefore I find Mr. Reimer's remarks confusing... The case is still in court. Lexar's Reimer said, "We just completed claim constructions a few weeks ago, and we are now moving into the mutually agreed-upon settlement discussions before the trial begins." Reimer indicated that Lexar might use its USB-enabled CompactFlash technology as a "trade" in those talks. I suspect that SanDisk will ask for a monetary payment per card sold. I understand that 7 to 12% of wholesale may be a reasonable licensing fee. It is either a payment like that or you take your product off the shelf. I mean, SanDisk is going to play hard ball. Does anybody have an idea about this figure? It could amount to $3 to $10 dollars per card depending on the card capacity. Lexar should have settled before SanDisk licensed proprietary controller technology from SSTI. That was a huge mistake. Potentially fatal, IMHO. DON"T FORGET TO REMIND MR. REIMER TO BRING A DIAPER CHANGE TO THE SETTLEMENT TALKS. Ausdauer