Federal Trade Commission Issues Remedy in Case against Rambus
Rambus Inc. (Nasdaq:RMBS), one of the world's premier technology
licensing companies, today announced that the Federal Trade Commission
(FTC) has issued its order with respect to remedy in the matter
against Rambus Inc.
The Commission has issued an Order setting the maximum royalty
rate that Rambus can collect on sales made of certain JEDEC-compliant
parts after the Order becomes effective, as follows: 0.25% for SDRAM
products; 0.5% for DDR SDRAM products; 0.5% for SDRAM memory
controllers or other non-memory chip components; and 1.0% for DDR
SDRAM memory controllers or other non-memory chip components. The
Commission has further provided in its Order that these maximum rates
will be in effect for three years, after which time the maximum rates
will be 0%. The Order also mandates that Rambus offer a license for
these products on terms set by the Commission, including a further cap
on the non-memory rates that can be sought on broader systems.
The Commission determined that its remedy would not apply to DDR2
SDRAM or other post-DDR JEDEC standards.
"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."
Rambus intends to move for a stay of the Order pending its appeal
of both the liability findings and the remedy. Absent a stay, this
Order will become effective in 60 days.
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. Chief Judge McGuire's initial decision
made over 1,600 detailed findings of fact in Rambus's favor. The FTC's
own Complaint Counsel appealed this initial decision to the
Commissioners, who have now rendered this decision with respect to
remedy. For more information about the case, see www.ftc.gov, docket #
9302.
About Rambus Inc.
Rambus is one of the world's premier technology licensing
companies specializing in the invention and design of high-speed chip
architectures. Since its founding in 1990, the company's patented
innovations, breakthrough technologies and renowned integration
expertise have helped industry-leading chip and system companies bring
superior products to market. Rambus' technology and products solve
customers' most complex chip and system-level interface challenges
enabling unprecedented performance in computing, communications and
consumer electronics applications. Rambus licenses both its
world-class patent portfolio as well as its family of leadership and
industry-standard interface products. Headquartered in Los Altos,
California, Rambus has regional offices in North Carolina, India,
Germany, Japan, Korea, and Taiwan. Additional information is available
at www.rambus.com.
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