United Business Media EE Times


Search

HOMELATEST NEWSSEMICONDUCTORSMOST POPULARMARKET INTELLIGENCE UNITFORUMSDESIGNNEW PRODUCTSCAREERSBLOGSCONTACTEVENTSSIGN UP!RSS

 

UPDATED: Jury finds Rambus committed fraud








EBN


RICHMOND, Va. - A federal court jury here Wednesday afternoon found Rambus Inc. had committed fraud by failing to disclose its synchronous patent applications to the industry JEDEC standards body.

The jury ordered Rambus to pay $3.5 million in punitive damages to Infineon Technologies AG, which Rambus had sued for alleged patent infringement.

The damage amount, however, will likely be reduced to as low as $350,000 due to a Virginia state law capping the level of punitive awards.

In a separate count, the jury Wednesday determined that Rambus had not violated RICO anti-racketing law as a result of its patent application silence at JEDEC.

Infineon attorneys told Federal Judge Robert Payne Wednesday that they will file a motion, based on the jury's verdict of fraud, to have the Rambus patents declared unenforceable against the German chip maker.

If the judge made such a ruling, it could be cited as a precedent in the two other pending Rambus synchronous patent cases involving Micron Technology and Hynix Semiconductor (formerly Hyundai Electronics).

Infineon attorneys told EBN they are seeking the ruling as a safeguard in the event an appellate court overrules Judge Payne's decision that Infineon didn't infringe Rambus' patents.

Last week, Infineon was cleared of infringing Rambus' synchronous patent infringement, when Judge Payne ruled that the chip maker's SDRAM and DDR chips didn't have a multiplexed memory bus that the Rambus patents require.

Avo Kanadjian, Rambus vice president of worldwide marketing, declined to comment immediately after the jury verdict, asking to have further time to consider the decision.

Rambus issued a statement that it plans to immediately appeal today's verdict. In addition, Rambus said it will file post-trial briefs with the U.S. District Court for the Eastern District of Virginia to set aside today's verdict.

"We are obviously disappointed in today's verdict and will immediately appeal," said Geoff Tate, CEO of Rambus, in the released statement. "The innovations at issue are Rambus inventions, and the evidence presented at trial made it clear that Infineon knew all along that they were Rambus inventions."

"I attended the whole trial and continue to believe that Infineon's JEDEC charges are completely baseless. Rambus abided by JEDEC's rules despite the fact that these rules have been shown to be confusing, conflicting, poorly communicated and generally not complied with by other JEDEC members.

"Today's verdict, if allowed to stand, poses a serious threat to all technology companies that try to protect their inventions through our intellectual property laws. It puts innovators at risk of forfeiting their intellectual property rights by simply attending meetings of a standard setting committee."

Rambus has already appealed Judge Payne's earlier summary judgment throwing out infringment claims.

The fraud verdict is the first public judgment against Rambus' silence on its synchronous patent applications during four years of participation in the industry JEDEC panel drafting an SDRAM open standard.

Sherry Garber, vice president of Semico Research, Phoenix, said the jury verdict of fraud "has to be a great embarrassment for Rambus as well as having a negative financial impact." She said the finding of fraud is a serious matter for any company, especially for Rambus as it seeks to push its core Direct RDRAM and collect royalties of SDRAMs and DDR.

Micron and Hynix separately have also charged Rambus with fraud in its JEDEC behavior.

Rambus had argued that it disclosed its basic Rambus DRAM patent which included features that later were added to its synchronous DRAM applications.

In addition to the legal setbacks to Rambus, the Richmond trial for the first time disclosed formerly confidential synchronous licensing details with eight chip makers that impact Rambus' royalty revenue stream.

This week Infineon attorneys revealed that Samsung Electronics Co. can stop paying SDRAM and DDR royalties to Rambus if a court in any geographic region of the world determines that any company does not infringe the synchronous patents.

It was also disclosed for the first time that Rambus was charging each of its eight licensees, including Samsung, a 3.5% royalty of DDR sales, as well as 0.75% royalty on singel data rate SDRAMs.

Judge Payne told the jury Tuesday that if it determined that Rambus committed an actual fraud, it had the option of awarding punitive damages against the firm.











  Free Subscription to EE Times
First Name Last Name
Company Name Title
Email address
  Click here for your Free Subscription to EETimes Europe
 
CAREER CENTER
Ready to take that job and shove it?
SEARCH JOBS
SPONSOR

RECENT JOB POSTINGS
CAREER NEWS
Federal CTO Sees IT Leading U.S. Out Of Recession
Aneesh Chopra is looking to other CIOs to advise him on fleshing out a more detailed agenda to best serve the president's IT agenda.

For more great jobs, career related news, features and services, please visit EETimes' Career Center.



All White Papers »   

  Around Silicon Strategies

FPGA startup crunch: These articles are part of a series that examines the status of various FPGA startups in light of the economic recession. Startups Abound Logic, Achronix Semiconductor and Cswitch are all on the hot seat. More...

10 fab technologies on the hot seat: There's trouble brewing in chip-making paradise. Delivery of chips at 32-nm and beyond won't be a cool breeze. EE Times has constructed the following list of 10 fab technologies that could make or break future IC scaling. More...

6 fab technologies on the bubble: It isn't going to be a slam-dunk to deliver chips at 32-nm and beyond. See our story about 10 fab technologies on the hot seat. Then read this article: 6 technologies on the bubble. More...

Our take on Intel-River: With its acquisition of embedded software leader Wind River Systems Inc., Intel Corp. has unambiguously signaled that it is again attempting to diversify beyond X86 processors. Here's our take on the deal. More...

CEVA's reversal: When Gideon Wertheizer, CEVA's CEO, came to New York to ring the closing bell at Nasdaq to celebrate the company's 10th year anniversary, he talked about CEVA's 21.6 percent revenue growth in 2008. More...

Hot technologies to watch for in 2009: Every technologist, marketer, industry analyst and reporter on a hunt for the next big thing is bracing for the 2009 Consumer Electronics Show scheduled less than a month away. More...

Top 20 predictions for semis in 2009: To help sort out the confusion in the market, EE Times has released its own chip forecasts--and other predictions--for 2009. So, what will happen in analog, FPGAs, foundry, memory, MPUs and other sectors? More...

Silicon 60 version 8.0 The EE Times 60 Emerging Startups list, first published in April 2004, has been updated to version 8.0 to reflect the latest corporate, commercial, technology and market conditions. More...

 
Education and
Learning


Learn Now:












Home | About | Editorial Calendar | Feedback | Subscriptions | Newsletter | Media Kit | Contact | Reprints|  RSS|   Digital|  Mobile
Network Websites
International
Network Features




All materials on this site Copyright © 2009 TechInsights, a Division of United Business Media LLC All rights reserved.
Privacy Statement | Terms of Service | About