Hynix lost, the Samsung settled & Nvidia's bad news
How many companies are facing possible treble damages if the lawsuits are resolved in court? After last week how many companies are a lot more anxious to come to an agreement with Rambus outside of court? How many companies will get a lot more pressure from OEM's to clear up the dispute and prevent possible lock ups of inventory.
Maybe the coming week will see a few more settlements. When a few more settlements are announced what that will do to the share price?
Some selling of the news. Some taking a little off the table. Other buyers will move in and pick up the slack. Soon we will be to $40 range and it will be time to get out. I have been in and out of this stock for the last 8 years and have seen it many times.
It is believe that between 100 and 300 firms have probably been infringing on Rambus' patents since 2000. However, Rambus cannot collect retroactive back damages unless they notified those firms, in writing, that Rambus believed them to be infringing Rambus patents.
It is known that Rambus sent out such letters to at least about 3 dozen firms in the 2000-2002 time frame (and likely more subsequently). However, with some exceptions, it is not known exactly how many such letters were sent out, or to whom, or when (Rambus cannot collect damages for any infringement that occurred before an infringing firm was notified).
[It is known with certainty that NVidia was one of the firms put on notice early; it's mentioned in a small-print footnote in an NVidia annual stockholders report from early in the decade.]
It is a shame that these companies, who now can clearly see the writing on the wall, don't get a settlement accomplished instead of dragging it out, paying more attorney fees, and/or allow RMBS's card hand to get stronger and stronger. It is very plain to see that Rambus has offered to be more than fair on settling, but as time goes on they will be able to hold out long enough to increase their demands possibly to the point of taking ownership in these infringing companies. Dishonesty, in the end, will always lose.
"We had held talks with Rambus before, on and off, but the gap in our opinions is still considerable," Hynix CEO Kim Jong-kap told reporters on the sideline of an investor meeting.
============================= The Samsung news and the Court ruling on Nvidia may help Kim_Jong-kap understand his situation better. After last week Hynix may be ready to start serious negotiantions on the final payment.