Rambus settles EU antitrust probe, avoids fines

Jun 12, 2009 By AOIFE WHITE , AP Business Writer

(AP) -- Memory chip company Rambus Inc. said Friday that European Union antitrust regulators had provisionally agreed to drop a probe and any fines if the company reduced its royalty rates for DRAM memory chip patents.

The European Commission in 2007 charged Rambus with monopoly abuse, alleging that the company set "unreasonable" royalties for DRAM patents fraudulently set as industry standards.

Any company that wanted to make DRAM, or Dynamic Random Access Memory, had to pay Rambus for the design it developed. The chips were used in personal computers, servers, printers, personal digital assistants and cameras.

Rambus said it would now offer licenses with maximum royalty rates for certain memory types and memory controllers.

The EU must check with other industry players that this satisfies antitrust concerns before the deal can be finalized.

This would end the company's antitrust disputes on both sides of the Atlantic over allegations of "patent abuse," where a company deceives a standards body by keeping secret the fact that it holds patents on technology that all players will later be forced to license.

Rambus said last month that the U.S. Federal Trade Commission had dropped a similar probe.

Chip manufacturers claimed that Rambus was seeking royalties in the early 1990s even as it took part in industry-wide talks that set standards for chips that were to be made mandatory - giving the company a monopoly over key technology patents.

Los Altos, California-based Rambus has consistently denied wrongdoing.

Rambus was last year cleared of these charges by a U.S federal court which dismissed legal action by chip makers Micron Technology Inc. of Boise, Idaho, Hynix Semiconductor Inc. of Icheon, South Korea, and Nanya Technology Corp. of Kueishan, Taiwan.

They said Rambus had deliberately withheld information from the Joint Electron Device Engineering Council, or JEDEC, which counted Rambus as a member as it established guidelines for the computer industry.

The FTC ruled in 2006 that Rambus had violated antitrust laws. But the U.S. Court of Appeals for the District of Columbia Circuit overturned the decision in 2008 and sent the case back to the FTC, saying the agency had not come up with enough evidence to prove that Rambus had sought a monopoly or hurt competition.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Starbucks: Computer outage disrupts sales in US, Canada

Related Stories

Rambus says FTC has dropped antitrust claims

May 14, 2009

(AP) -- Rambus Inc. said Thursday that the Federal Trade Commission has dropped its claim that the memory chip company violated antitrust laws in patenting technologies that were eventually incorporated into industry standards.

Rambus grants Toshiba new patent license

Jul 06, 2006

High-speed chip interface licensing company Rambus Inc. announced Wednesday it has signed a new patent license agreement with Toshiba Corporation.

Rambus signs licensing deal with AMD

Jan 03, 2006

Rambus said Tuesday it has signed a five-year licensing agreement with Advanced Micro Devices, giving AMD a license to Rambus patents.

Rambus licenses Cell BE chips to IBM

Mar 17, 2006

Rambus has licensed chip technology to IBM for use in the production of Cell Broadband Engine (Cell BE) processors for computers and consumer electronics.

Recommended for you

How smart are the mobile shoppers who use smartphones?

Apr 24, 2015

In the age of the smart phone, how smart are the mobile shoppers who use these almost ubiquitous devices? A study from South Korea published in the International Journal of Mobile Communications hopes to answer that questi ...

India's Infosys gives muted earnings, stock falls

Apr 24, 2015

Indian software giant Infosys Technologies saw its shares dip nearly seven percent Friday after it reported a single digit rise in yearly revenues and also missed quarterly profit estimates.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.