( ESNUG 395 Item 7 ) --------------------------------------------- [06/26/02]

From: Mike Dini <mdini@dinigroup.com>
Subject: I Got Burned On Taxes Buying Ambit CD Instead Of Downloading It

Hi, John,

I have Ambit for RTL synthesis.  (Synopsys won't sell me DC, but that is
another story.)  Cadence is charging me tax on the maintenance support
agreement.  So rather than downloading the updates from the web, I am
forced to pay $360 dollars (8% of $4,500) for a single CD that is shipped
to me instead.  Synopsys does not charge tax on maintenance.  I still can't
get an answer from Cadence as to why is a maintenance agreement taxable.
And get this, I cannot change to the web based option, since I supposedly
opted for CD option when I bought the tool 2-3 years ago.  Seems like one
expensive CD.

    - Mike Dini
      The Dini Group


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