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Rambus Focuses on Products, Not Patents

8/12/2013 12:00 PM EDT
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mcgrathdylan
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Encouraging
mcgrathdylan   8/12/2013 1:59:28 PM
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It's encouraging to read this. I think focusing on products rather than pursuing a strategy that has Rambus labeled as a "patent troll" is a good direction for the company. I like the statement that there is not much difference between Rambus and ARM. Years ago I think that was true, but in recent years the companies seem to have pursued very different paths. I hope this is a sign that Rambus will indeed be more like ARM as time goes on.

krisi
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happy to hear
krisi   8/12/2013 2:09:36 PM
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I am really happy to hear that...so many companies are trying to derive value from licensing that is somnewhat refreshing that someone actually wants to build products...good luck Rambus!

Sheetal.Pandey
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Re: happy to hear
Sheetal.Pandey   8/12/2013 2:42:45 PM
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Thats a good move by RAMBUS. Patent game is a distraous game unless your pockets are deep and you have the right lawyers.

Peter Clarke
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Re: happy to hear
Peter Clarke   8/13/2013 5:19:44 AM
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Rambus has signed some very big deals and achieved some very big settlements over the years.

In general it's patent licensing play would seem to have been successful BUT it is hard to build a relationship with customers through the confrontational legal system AND such settlements are "lumpy" which can be frightening for shareholders.

I think Ron Black has decided that it is better to be collaborative and take a little bit less out of the customers at each licensing bite but win repeat business, just like ARM.

But he also has to decide in which markets to play as a product or service provider and in which markets to be an IP licensor. You can't do both in the same market at risk of competing with your customers.

 

 

rick merritt
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Perception and reality
rick merritt   8/12/2013 2:38:15 PM
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Interesting neew direction.

At a recent meeting lunch meeting of licensing executives in Silicon Valley, Rambus was listed as one of the top five non-practicing entities by revenue, so they are definitely seen as a patent, not a product company.

krisi
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good move?
krisi   8/12/2013 2:51:52 PM
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Whether that is actaully good move financially that remains to be seen...but at least this is a good move for my engineering soul ;-)

daleste
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Re: good move?
daleste   8/12/2013 9:57:11 PM
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Yes, I agree.  Having products to sell is always a better position than licensing IP.  You don't need as many lawyers.

docdivakar
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Re: Rambus Focuses on Products, Not Patents
docdivakar   8/12/2013 4:41:23 PM
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Good move indeed. How ever, emulating an ARM-like business model will take changes to both R&D and marketing for Rambus. Licensing patents vs. Silicon-verified IP does take more R&D investment for the latter.

MP Divakar

junko.yoshida
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Which "products"?
junko.yoshida   8/12/2013 10:54:16 PM
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Rambus' plan to diversify its business beyond memory technology has been put in place since more than a few yearsa ago.

First, it started with lighting and display technology (see details below)

http://www.eetimes.com/document.asp?doc_id=1264103

and then, Cryptography Research Inc. was also added a couple of years ago.



Now, image sensors, etc.

It is not clear to me that with such diversified technology fields Rambus seems interested in today, which ones will become Rambus' flagship products vs IP licesning.

 

Peter Clarke
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Re: Which "products"?
Peter Clarke   8/13/2013 5:10:26 AM
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Junko

 

I think you are right.

It may well be that Rambus will be looking for some strategic options for some of its technologies while looking for others that hang together well.

For example, I can imagine a synergy between memory interfaces, cryptographic protection, digital rights management and image computation. Light bulbs and displays seem to be in a different camp.

Sanjib.A
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Good to be a product based company
Sanjib.A   8/20/2013 1:12:18 PM
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I too believe it is always good to be a product based company rather than doing just IP licensing if the product is right for the market. Again it is encouraging to see that RamBus is working on some product capable of IoT. This trend emphasizes that IoT is on the horizon, even though there are some speculations raised about its success in the article "Internet of Things need glue".

Peter Clarke
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Re: Good to be a product based company
Peter Clarke   8/27/2013 6:35:08 AM
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I agree it is good to be product-based company. It certainly scales better than a service-based company.

However, one distinction that my Rambus interviewee was making, I believe, was between being a technology licensor (that teaches customers how to fish) rather than a patent licensee (that warns people that if they are thinking about designing a fishing rod they have to pay up). 

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