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March 21, 2005
Bad Memories
Rambus Inc. and Infineon Technologies AG settled their long-running patent battle, agreeing to cross-license. Under the deal, German memory chip maker Infineon will pay Rambus $23.4 million a year for two years in quarterly installments, but gets to drive it away today. After that, Infineon could continue to pay up to $100 million under certain conditions. Rambus generously agreed to treat Infineon as a "most-favored customer."
Infineon is a German memory chip maker. Rambus manufactures patent licenses, specifically related to SDRAM and DDR DRAM memory interface designs for relieving throughput bottlenecks in communication between memory chips and microprocessors.
In 2000, Rambus sued Infineon for patent royalty payments. Infineon balked, alleging that Rambus participated in a group setting industry standards, all the while failing to disclose, as required by the group's bylaws, that it had patents on some of the technical specifications it promoted. Rambus participated in the group from 1991 to 1995, then left.
In 2001, a Virginia jury decided that Rambus should pay Infineon $10 million in damages and litigation costs. The Federal Appeals Court (CAFC) reversed the trial court ruling in early 2003. Infineon demanded a retrial.
On March 2, 2005, Federal Judge Robert E Payne dismissed Rambus's claims, because Rambus had destroyed relevant documents in anticipation of litigation. At the time, Rambus bellowed that it had "strong case" for appeal. The settlement outcome with Infineon seems to bear that out.
Rambus remains on the hunt against Hynix Semiconductor, Inotera Memories, Nanya Technology Corp, and Micron Technology Inc.
Posted by Patent Hawk at March 21, 2005 1:11 PM | Litigation