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March 26, 2008

Rambus Rambles

Memory chip patent holder Rambus saw its stock soar 39% on news that a San Jose jury dismissed charges from competitors Hynix, Micron, and Nanya, that Rambus rigged the playing field by getting patents on the SDRAM memory standard. This is a turnaround from a 2001 jury verdict validating a fraud charge from Infineon, and a 2006 FTC ruling of deception, now on appeal.

Rambus stock shot up $7.25, to $28.86 per share.

Rambus General Counsel Tom Lavelle purred: "Over the years, the company has got a tarnished reputation. I hope this is the beginning of turning that around."

Hynix, Micron, and Nanya vowed appeal. Micron attorney Jared Bobrow mused that the jury overlooked key testimony about members of the standards body, the Joint Electron Device Engineering Council (JEDEC), being expected to work together in good faith. Bobrow claimed that JEDEC members did not know that Rambus was filing patents. Bobrow didn't explain why that story fell on deaf ears during the seven-week trial.

Punters expect the fight to continue, but consider this ruling as paving the path to a royalty windfall in the billions. Rambus has numerous suits against many computer memory makers. Michael Cohen at Pacific American Securities in San Diego speculated royalties could reach $11.7 billion for 2000-2011. Making exact number estimates for wild guesses often fools the hoopleheads that you know what you are talking about. 

Rambus is a small Los Altos California company that design memory chips, but does not manufacture, instead licensing the technology.

Posted by Patent Hawk at March 26, 2008 6:58 PM | Patents In Business

Comments

The memory cartel will be appealing this case to the CAFC, the same applet court that ruled in 2003 (Judge Rader's panel) that there was "no duty to disclose" and denied an en banc rehearing in 2004. Good luck with that…

Posted by: Reggatta De Blanc at March 27, 2008 2:03 AM

The memory cartel must be busy now trying to push patent "deform" through the US Senate.
Yeah, the patent "deform" as currently written might help them a lot, by requiring damage apportionment calculation: a small component, improvement over "prior art" and shit like that

I am looking forward to hear about some big jucy lobbying scandal ala Jack Abramoff (but this time with so-called "democrats" in US Congress)

Someone's going to wear stripes....

Posted by: angry dude at March 27, 2008 6:31 AM

The Senate sponsor of the corrupt patent "reform" is Orrin Hatch from Utah…
One of Hatch's best "business" partners (Micron employs Utahns in their Lehi foundry) is Micron's Steven Appleton from the neighboring state, Idaho. Appleton is one of the charter members of the "Coalition for Patent "Fairness" which is feverishly trying to pass this "Reform" through the Senate. It is obvious that Micron will face existential risks if they are forced to pay back all the loot they pirated from Rambus over the years, not to mention a 4-5% on going royalty that will render them uncompetitive with their Asian peers, there for the passage of the patent "reform" that would cast a serious shadow on the pure IP business model is probably Micron's last resort for escaping Justice.

It seems like the aggregate political pull of the stake holders opposing this bill should carry more weight then the opportunistic supporters of this self destructive legislation, I truly hope they can actually stop it.

Posted by: Reggatta De Blanc at March 27, 2008 7:59 AM

angry dude

The Senate sponsor of the corrupt patent "reform" is Orrin Hatch from Utah…
One of Hatch's best "business" partners is Micron's Steven Appleton (Micron employs Utahns in their Lehi foundry) from the neighboring state, Idaho. Appleton is one of the charter members of the "Coalition for Patent "Fairness" which is feverishly trying to pass this "reform" through the Senate. It is obvious that Micron will face existential risks if they will be forced to pay back all the loot they pirated from Rambus over the years, not to mention a 4-5% on going royalty that will render them uncompetitive with their Asian peers, there for the passage of the patent "reform" that would cast a serious shadow on Rambus's pure IP, business model is probably Micron's last resort for escaping Justice.

It seems like the aggregate political pull of the stake holders opposing this bill should carry more weight then the opportunistic supporters of this self destructive legislation, I truly hope they can actually stop it.

Posted by: Reggatta De Blanc at March 27, 2008 8:10 AM

"It seems like the aggregate political pull of the stake holders opposing this bill should carry more weight then the opportunistic supporters of this self destructive legislation..."

No shit, dude

With all the nation's universities, professional associations like IEEE, the Unions, venture capitalists, Big Pharma, all Biotech industry, how come is this "reform" still alive ?
Now, despite Hatch's efforts this "reform" was a no-go under the republican leadership in US Congress.
I blame democrats, partucularly California's "democrates" for the passage of this bill in he House of Reps last September.
Now, Democratic party going against the Unions, that's something these "democrats" will have to pay for..

Needless to say, I am not voting for "democrats" anymore

Posted by: angry dude at March 27, 2008 8:42 AM