Rim Semiconductor Company (fka RSMI)

[spokeshave]

SR: Re: Those are co owned. I don't believe they have any patents on Embark in their name only.

That's correct. Any IP developments made on Embarq are co-owned by NVEI/ANI according to the development agreement.

It's all in here, Exhibit 10.15:

http://edgar.sec.gov/Archives/edgar/data/1026595/000101968702001188/0001019687-02-001188.txt

It's interesting reading, and I go back to it from time to time. I re-read it again tonight, and I noted that PowerStream is also licensed to two other companies. Although this has been discussed before, it is worth noting again. The exact quote is:

NVC acknowledges that ANI has previously granted non-exclusive licenses under the PowerStream IP in the Field to two parties with worldwide businesses headquartered in the United States, and the exclusivity given to NVC by this Section is subject to those licenses.

"Field" is defines as:

"FIELD" means transmission products for any portion of the
telecommunications network comprised of copper telephone wire between and including the carrier's facility and the termination of that wire at the access point at the user premises, including in-building copper telephone wire cable riser applications in multi-tenant units (MTUs) and multi-dwelling buildings (MDUs). Other in-building applications are
not included in the Field.

Ketch glossed over this with his RAQ response to this question:

Both cases of licensing pre-date our license and development agreement with ANI and were known to us before we entered into the relationship. Neither case allows another company to license the Embarq™ enhancements, thus there is no scenario where a competitor could come to market in outside plant wireline telephony with an Embarq™-like product.

As we now know, the so-called "Embarq™ enhancements" have never been made to work. So, there are two companies out there with licenses to PowerStream for the same use as the NVEI license who now have a 3-year head start.

Oh, and in looking up that RAQ, I found this one about Ikanos:

At this time, we are pleased to note that Ikanos's announced performance chipset is significantly less than we expect to achieve with our first product offering. A main difference between the Ikanos offering and ours is that they must bond together multiple pairs of copper wires in order to achieve high data speeds, while we use a single pair.

That's just an outright lie. Ikanos' Fx and SmartLeap products are single-pair products. They have never, to my knowledge, offered a bonded-pair product.

So, the main difference between Embarq and the competition two years ago was that the competition used bonded pairs, which they did not. The main difference is not a difference at all. Furthermore, since then, Ikanos has released the FX family that leads the market. As I have said many times. The competition has surpassed Embarq's claims with real-world shipping products. That' while NVEI is as much as a year away from having an FPGA prototype done, and a year or so more to get an ASIC done.

Unbelievable. Lie anter lie, and people stil make excuses for this company.

427 Cobra - this is one question I would like to see Brad answer. Ask him why he lied (or if you want to give him the benefit of the doubt - why he grossly and incompetently underestimated the competition)about Ikanos' products. I'd *love* to see that answer.