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Home > hynix

hynix

Decision Reached in Rambus Price Fixing Case Against Hynix and Micron

Jury finds in favor of defendants, finds evidence does not meet anti-trust threshold

SUNNYVALE, CALIFORNIA, UNITED STATES – 11/16/2011 – Rambus Inc. (Nasdaq:RMBS), one of the world’s premier technology licensing companies, today announced the jury in its anti-trust case against Hynix Semiconductor (000660.KS) and Micron Technology (NYSE:MU) has found in favor of the defendants. The jury found that Rambus did not meet its burden of proving its case against the two defendants. At issue were Rambus allegations that the defendants illegally conspired to constrain availability of Rambus’ RDRAM® and keep its prices unnaturally high relative to its competition, while holding competitive DDR pricing low, in an effort to eliminate Rambus’ RDRAM memory technology from the marketplace. Upon succeeding in eliminating RDRAM as a competitor in the main memory market, the defendants raised the prices of DDR by as much as 500%.

“We are disappointed with this verdict as we believe strongly in our case. We thank our legal team and everyone who has supported Rambus in this case over the past seven years. We do not agree with several rulings that affected how this case was presented to the jury and we are reviewing our options for appeal,” said Harold Hughes, president and chief executive officer of Rambus. “Regardless of this outcome, we remain steadfastly committed to innovation as Rambus engineers and scientists continue to advance the frontiers of technology for the benefit of our customers and consumers worldwide.”

This case, CGC-04-431105, was originally filed on May 5, 2004 in the Superior Court of the State of California. In the suit, Rambus charged that the defendants engaged in a concerted and unlawful effort to eliminate competition and stifle innovation in the market by collectively rigging DRAM prices to drive Rambus’ RDRAM memory technology from the market.

Rambus asserted its claims under certain causes of action, including conspiracy to restrict output and fix prices in violation of the Cartwright Act and intentional interference with prospective economic advantage. The claim of the defendants engaging in unfair competition in violation of California Business and Professions Code Section 17200 remains to be decided by the judge. Rambus previously dismissed without prejudice a claim of conspiracy to monopolize in violation of the Cartwright Act.

Audio Conference Call and Webcast Scheduled

Rambus management will host a special conference call today at 2:00 p.m. PT to discuss this verdict. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus’ Investor Relations website or for one week at the following numbers: (855) 859-2056 (domestic) or (404) 537-3406 (international) with ID# 29014719.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies. Founded in 1990, the Company specializes in the invention and design of architectures focused on enriching the end-user experience of electronic systems. Rambus’ patented innovations and breakthrough technologies help industry-leading companies bring superior products to market. Rambus licenses both its world-class patent portfolio, as well as its family of leadership and industry-standard solutions. Rambus has offices in California, North Carolina, Ohio, India, Germany, Japan, Korea, and Taiwan. Additional information is available at www.rambus.com.

Rambus Comments on Order in Price-Fixing Case

LOS ALTOS, CALIFORNIA, UNITED STATES – 11/23/2009 – Rambus Inc. (NASDAQ:RMBS) today announced that Judge Richard A. Kramer of the San Francisco Superior Court has issued recommendations that the Rambus antitrust case against certain memory manufacturers and the Tessera Technologies antitrust case against Hynix be coordinated and assigned to the San Francisco Superior Court.

“At the hearing regarding coordination on November 6, 2009, Judge Kramer made clear that he would recommend coordination so long as it does not delay the commencement of the Rambus antitrust jury trial on January 11, 2010,” said Thomas Lavelle, senior vice president and general counsel of Rambus. “Consistent with those statements, we are preparing to start our trial in January and we look forward to confirmation from Judge Kramer when he returns to court next week.”

The Rambus case before the Honorable Judge Kramer was filed in 2004 alleging defendants Hynix, Micron and Samsung engaged in a concerted and unlawful effort to eliminate competition and stifle innovation in the market for computer memory technology and computer memory chips.

Additional information on this and other cases can be found at www.rambus.com/investor, under the Litigation Update section.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory 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’ innovations and solutions enable unprecedented performance in computing, communications, and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as a range of leadership and industry-standard memory solutions. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan, and Taiwan. Additional information is available at www.rambus.com.

U.S. District Court Orders Hynix to Post Security for Infringing Rambus Patents

Hynix to pay ongoing royalties into escrow

LOS ALTOS, CALIFORNIA, UNITED STATES – 05/26/2009 – Rambus Inc. (Nasdaq:RMBS) today announced that the U.S. District Court for the Northern District of California has ordered Hynix Semiconductor (000660.KS) to secure the judgment amount of approximately $397 million through a combination of a bond and a lien on a Hynix property in South Korea for infringing Rambus patents. The bonded amount of $250M is required to be posted within 45 days of the order. The lien will only serve as security if a new appraisal of the Hynix property shows a fair market value of at least double the amount of the judgment not secured by the bond. If the appraisal is inadequate, Rambus may ask the Court to substitute other security.

Final judgment in this matter was entered against Hynix on March 10, 2009 in the amount of approximately $134M for infringement through December 31, 2005 and approximately $215M for its infringement from January 1, 2006 through January 31, 2009. In addition, the Court awarded about $48M in pre-judgment interest to Rambus.

“We fully expect the judgment against Hynix to be upheld on appeal, and that we will be entitled to collect the entire amount of the judgment,” said Thomas Lavelle, senior vice president and general counsel at Rambus. “We appreciate the Court’s thoughtful consideration in this case, however, we believe Hynix should have been required to post a bond for the entire amount of the judgment. If Hynix’s proposed lien fails to show value of roughly $300 million, we will ask the Court for other security in order to protect Rambus’ interests.”

In addition, the Court ordered Hynix to pay compulsory license fees into escrow pending the outcome of the appeal Hynix filed in this matter. The Court ordered Hynix to pay Rambus royalties on net sales after January 31, 2009 and before April 18, 2010 of 1% for SDR SDRAM and 4.25% for DDR SDRAM memory devices. The latter rate applies to DDR, DDR2, DDR3, GDDR, gDDR2 and GDDR3 SDRAM devices, as well as DDR SGRAM devices. Damages and the compulsory license apply to U.S. infringements of the patent claims in suit.

Background of the Case
This case was originally filed by Hynix against Rambus in August 2000. The Honorable Ronald M. Whyte of the U.S. District Court for the Northern District of California split the case into three separate phases with Rambus subsequently prevailing in all three phases. During the first phase, Hynix alleged that Rambus’ patents were invalid based on the doctrine of unclean hands. The Court issued its Findings of Fact and Conclusions of Law in Rambus’ favor in January 2006. The Court reaffirmed its finding of no spoliation when it denied Hynix’s motion for reconsideration in February 2009.

The second phase dealt with Rambus’ allegations that Hynix memory products infringed its patents. In April 2006, a jury unanimously found that all ten Rambus patent claims at issue in that trial are valid and infringed by Hynix memory products. The jury award of approximately $307M in damages for U.S. sales of infringing Hynix products through December 31, 2005, was subsequently reduced by the Court to approximately $134M.

In the third and final phase of the case, Hynix (together with Micron and Nanya) tried its remaining claims and defenses against Rambus including antitrust and fraud claims based on Rambus’ participation in a standard-setting organization called JEDEC. In March 2008, a jury found Rambus had acted properly during its participation in JEDEC in the early 1990s. The Court similarly found in Rambus’ favor in a decision issued on March 3, 2009.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory 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.

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements regarding our intention to continue our innovations, filing of patents and efforts to be fairly compensated for our patented inventions. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by our management. Actual results may differ materially. Our business generally is subject to a number of risks which are described more fully in our SEC filings including our 10-K and 10-Qs.

U.S. District Court Enters Final Judgment for $397M Against Hynix in Favor of Rambus

LOS ALTOS, CALIFORNIA, UNITED STATES – 03/10/2009 – Rambus Inc. (Nasdaq:RMBS) today announced that the U.S. District Court for the Northern District of California has entered final judgment in the Hynix Semiconductor (000660.KS) matter. Judgment was entered against Hynix in the amount of approximately $134M for infringement through December 31, 2005 and approximately $215M for its infringement from January 1, 2006 through January 31, 2009. In addition, the Court awarded about $48M in pre-judgment interest to Rambus.

The Court also ordered Hynix to pay Rambus royalties on net sales after January 31, 2009 and before April 18, 2010 of 1% for SDR SDRAM and 4.25% for DDR SDRAM memory devices. The latter rate applies to DDR, DDR2, DDR3, GDDR, GDDR2 and GDDR3 SDRAM devices, as well as DDR SGRAM devices. Damages and the compulsory license apply to U.S. infringements of the patent claims in suit. Execution of the Court’s judgment is stayed for 14 days in order for Hynix to file a motion under Rule 62 seeking relief from final judgment pending an appeal.

“We are pleased with the Court’s decision and are gratified by the tremendous time and energy the Court has dedicated to this matter,” said Thomas Lavelle, senior vice president and general counsel at Rambus. “Though this case has been long and arduous, we remain steadfast in our commitment to seek fair compensation for the use of our patented innovations.”

This case was originally filed by Hynix against Rambus in August 2000. The Honorable Ronald M. Whyte of the U.S. District Court for the Northern District of California split the case into three separate phases with Rambus subsequently prevailing in all three phases. During the first phase, Hynix alleged that Rambus’ patents were invalid based on the doctrine of unclean hands. The Court issued its Findings of Fact and Conclusions of Law in Rambus’ favor in January 2006. In ruling that “Hynix’s unclean hands defense fails,” the Court concluded that “Rambus did not engage in unlawful spoliation of evidence.” The Court also found that the “evidence also does not demonstrate that Rambus targeted any specific document or category of relevant documents with the intent to prevent production in a lawsuit such as the one initiated by Hynix,” and that the evidence “does not show that Rambus destroyed specific, material documents prejudicial to Hynix’s ability to defend against Rambus’s patent claims.” The Court reaffirmed its finding of no spoliation when it denied Hynix’s motion for reconsideration in February 2009.

The second phase dealt with Rambus’ allegations that Hynix memory products infringed its patents. In April 2006, a jury unanimously found that all ten Rambus patent claims at issue in that trial are valid and infringed by Hynix memory products. The jury award of approximately $307M in damages for U.S. sales of infringing Hynix products through December 31, 2005, was subsequently reduced by the Court to approximately $134M.

In the third and final phase of the case, Hynix (together with Micron and Nanya) tried its remaining claims and defenses against Rambus including antitrust and fraud claims based on Rambus’ participation in a standard-setting organization called JEDEC. In March 2008, a jury found Rambus had acted properly during its participation in JEDEC in the early 1990s. The Court also recently rejected Hynix’s (and Micron’s and Nanya’s) equitable JEDEC-related claims and defenses, finding that the evidence supported the jury’s finding “that JEDEC members did not share a clearly defined expectation that members would disclose relevant knowledge they had about patent applications or the intent to file patent applications on technology being considered for adoption as a JEDEC standard.” The Court further found that “not only did Rambus not have an obligation to disclose pending or anticipated patent applications, it had sound reasons for not doing so.”

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory 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.

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements regarding our intention to continue our innovations, filing of patents and efforts to be fairly compensated for our patented inventions. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by our management. Actual results may differ materially. Our business generally is subject to a number of risks which are described more fully in our SEC filings including our 10-K and 10-Qs.

Rambus and Hynix Agree on Damages and Terms for Compulsory License

Proposed final judgment of $397M submitted to Court

LOS ALTOS, CALIFORNIA, UNITED STATES – 03/09/2009 – Rambus Inc. (Nasdaq:RMBS) today announced that it has agreed in principle to terms for a compulsory license with Hynix Semiconductor (000660.KS) for SDR SDRAM and DDR SDRAM memory products. The parties have agreed to royalty rates of 1% for SDR SDRAM and 4.25% for DDR SDRAM memory devices for net sales after January 31, 2009 and before April 18, 2010. The latter rate applies to DDR, DDR2, DDR3, GDDR, GDDR2 and GDDR3 SDRAM devices, as well as DDR SGRAM devices. In addition, a proposed final judgment of $349M in damages, plus pre-judgment interest of approximately $48M has been submitted to the U.S. District Court for the Northern District of California. The final amount of pre-judgment interest depends on the date final judgment is entered. Damages and royalty rates are limited to U.S. infringements.

“While the Court still needs to resolve some outstanding issues, we are pleased to have reached agreement with Hynix on a number of terms,” said Thomas Lavelle, senior vice president and general counsel at Rambus. “Our goal as always is to seek fair compensation for the use of our patented inventions, and this agreement will be a significant milestone in pursuit of that goal.”

This case was originally filed by Hynix against Rambus in August 2000. Judge Whyte of the U.S. District Court for the Northern District of California split the case into three separate phases with Rambus subsequently prevailing in all three phases. During the course of the case, Judge Whyte found Rambus did not spoliate evidence as Hynix had alleged, and a jury found Rambus patents valid and infringed by Hynix. Judge Whyte and a separate jury also found Rambus acted properly while a member of the standard-setting organization JEDEC during its participation in the early 1990s.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory 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.

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements regarding our intention to continue our innovations, filing of patents and efforts to be fairly compensated for our patented inventions. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by our management. Actual results may differ materially. Our business generally is subject to a number of risks which are described more fully in our SEC filings including our 10-K and 10-Qs.

Court Grants Rambus Supplemental Damages in Hynix Case and Orders Negotiation of Compulsory License

Denies Rambus request for injunctive relief

LOS ALTOS, CALIFORNIA, UNITED STATES – 02/23/2009 – Rambus Inc. (Nasdaq:RMBS), one of the world’s premier technology licensing companies specializing in high-speed memory architectures, today announced that the U.S. District Court for the Northern District of California has granted its request for supplemental damages following an earlier jury verdict finding nine Rambus patents valid and infringed by Hynix SDRAM products. According to the order, Hynix is to pay Rambus royalties of 1% for SDR SDRAM products and 4.25% for DDR SDRAM products made, used, or sold in the United States after December 31, 2005. DDR SDRAM products include DDR SDRAM, DDR2 SDRAM, DDR3 SDRAM, GDDR SDRAM, GDDR2 SDRAM, GDDR3 SDRAM, and DDR SGRAM. These supplemental damages are in addition to those previously awarded in the amount of $133M for Hynix’s infringement through December 31, 2005.

While the Court denied Rambus’ request for injunctive relief, it did order Rambus and Hynix to negotiate the terms of a compulsory license to allow Hynix to continue to make, use, and sell SDR SDRAM and DDR SDRAM products.

“We are pleased with the Court’s order of supplemental damages,” said Tom Lavelle, senior vice president and general counsel at Rambus. “We believe any compulsory license between the two parties must fairly compensate Rambus for Hynix’s ongoing use of our patented inventions.”

The case with Hynix was originally filed by Hynix against Rambus in August 2000. Judge Whyte split the case into three separate phases with Rambus prevailing in all three phases. Cases are still pending against Hynix, Nanya, Micron, and Samsung in the Northern District of California.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory 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’ innovations and solutions enable unprecedented performance in computing, communications, and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as a range of leadership and industry-standard memory solutions. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan, and Taiwan. Additional information is available at www.rambus.com.

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