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September 13, 1990

TEXAS INSTRUMENTS IS DEMANDING ROYALTIES FROM JAPANESE CHIP MAKERS THAT AMOUNT TO 10% OF THE VALUE OF THE MEMORY CHIPS THEY MANUFACTURE

By CBR Staff Writer

Finding it increasingly hard to compete in the market, Texas Instruments Inc is demanding royalty payments from Japanese chip makers that amount to 10% of the value of the memory chips they manufacture, United Press International reports: Texas Instruments is not commenting beyond repeating that discussions are under way with a number of Japanese and Korean manufacturers regarding renewal of semiconductor patent license agreements, most of which expire at the end of 1990; Toshiba Corp admitted to the news agency that Texas had set forth a new proposal in the course of negotiations for a new licence agreement, but would not disclose details; most of the Japanese manufacturers have patent cross-licence agreements with Texas, and if its demands are exorbitant say they will seek to get back on the swings what they lose on the roundabouts.

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