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Alt 05-02-2007, 17:10   #489
Starlight
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Rambus to appeal FTC royalty rate cap
Monday February 5, 12:07 pm ET


Rambus Inc. said Monday it will appeal a Federal Trade Commission decision capping royalty rates for the company.
The Los Altos-based maker of memory-chip technology (NASDAQ:RMBS - News) has been embroiled for years in litigation with a number of companies, trying to get payments it says it is owed for use of memory technology patents.


The commission said Rambus can collect royalties of 0.25 percent for SDRAM products, 0.5 percent for DDR SDRAM products, 0.5 percent for SDRAM memory controllers or other non-memory chip components, and 1 percent for DDR SDRAM memory controllers or other non-memory chip components. It also ordered Rambus to establish internal procedures to make sure there is full disclosure of its patents and patent applications to standards groups.

After three years, the royalty rates would fall to zero.

"The order is designed to remedy the effects of the unlawful monopoly Rambus established in the markets for four computer memory technologies that have been incorporated into industry standards for dynamic random access memory -- DRAM chips," the FTC said in a statement.

Rambus said it would appeal the ruling, initially petitioning for a stay of the FTC order pending its appeal of the remedy and related liability findings.

"While we believe it appropriate that the commission did not reach DDR2, GDDR2, or succeeding generations, we are nevertheless disappointed that the commission's remedy with respect to SDRAM and DDR SDRAM continues to ignore the extensive findings of fact made by its own Chief Administrative Law Judge McGuire," said Tom Lavelle, senior vice president and general counsel for Rambus. "Because we strongly disagree with a number of the commission's determinations, we plan to appeal its decision. We believe that a fair review of the underlying facts will restore the perspective of the Chief ALJ who exonerated Rambus by dismissing the complaint."

The FTC brought antitrust charges against Rambus in 2002. Chief Administrative Law Judge Stephen McGuire held a three-month trial on these charges in the spring of 2003, after which he dismissed the FTC's complaint in early 2004. The commission overturned McGuire's ruling in July 2006.

Published February 5, 2007 by the Silicon Valley / San Jose Business Journal


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