Rambus (RMBS)

[justmyopinion-ntim]

Ah, the old, "we can only afford 0.5% argument.

"Which one do you think is higher? I can certainly tell you from negotiating these things that the best of DRAM portfolios rarely see more than .5% because of the economics of the business.

That completely ignores the testimony and FTC ID that stated that Rambus was asking a rate that was LESS than royalty rates currently being paid by the JEDEC memeber companies. If what you say is true, then why didn't the FTC call you as an expert witness?

There is no way a jury gives Rambus anywhere near these numbers. I think they will be lucky to see 2.5%, and will likely see between 1 - 1.5%, because they will, in all likelihood, come in between Hynix's number and Rambus's number."

Rambus' number is probably 5%, Hynix already agreed to 2.5%. Somewhere in between is 3.75%

Hynix's problem is that they already agreed to pay 2.5%. Everyone that has agreed to pay has paid that or more on DDR. The fact that IFX got an negotiated settlement that was a lump sum rate is immaterial compared to the seven other companies that agreed under good faith negotiations to rates that were higher. And the higher rates did not include a cross license to all of the companies other patents. I think the IFX deal will be a lot of smoke, but there is enough facts to show what a fair rate is.