The Dodge Report

The Federal Trade Commission (FTC) dealt a blow to Rambus’ strategy of DRAM patent licensing and litigation. In a 5-0 vote, the FTC ruled today that Rambus hid patents from JEDEC ( now the Solid State Technology Association and formerly the Joint Electronic Device Engineering Council) in its standard-setting deliberations. In short, JEDEC ratified standards based on Rambus technology without knowing it. If the FTC’s ruling holds up, it promises to throw expensive litigation and judgments in Rambus’ favor into question. The company has won almost $1 billion worth of patent infringement judgments against Hynix, Micron, Elpida and Infineon. Rambus said it will appeal.

The ruling – very harsh in its language – is a stinging rebuke for Rambus. “Rambus’ abuse of JEDEC’s standard-setting process was intentional, inappropriate, and injurious to competition and consumers alike," FTC Commissioner Jon Leibowitz wrote. Put another way, colleague Tam Harbert who’s closely followed The Rambus Wars for EB says the company’s legal troubles makes “your head spin.” Rambus is also under-investigation for backdating stock options. 

Another dreary day in the life of the DRAM business.