LOS ALTOS, Calif., Jun 11, 2009 (BUSINESS WIRE) -- Rambus Inc. (NASDAQ:RMBS), one of the world's premier technology
licensing companies specializing in high-speed memory architectures,
today announced that it has reached a tentative settlement with the
European Commission (the "Commission") to resolve the pending case
against the Company. Under the proposed resolution, the Commission would
make no finding of liability relative to JEDEC-related charges, and no
fine would be assessed against Rambus. In addition, Rambus would commit
to offer licenses with maximum royalty rates for certain memory types
and memory controllers on a forward-going basis. European Commission
antitrust procedures stipulate that a final decision must be preceded by
a consultation of interested third parties on the terms of the
commitments offered (the "Commitment"); this consultation was initiated
today.
"Our view regarding standard-setting organizations is that the rules of
such organizations must be written and clear, and that there should be
consequences if such clear written rules are violated," said Thomas
Lavelle, senior vice president and general counsel at Rambus. "We did
nothing wrong during our participation in the JEDEC standard-setting
organization, as demonstrated in multiple U.S. court victories including
before the D.C. Court of Appeals. With this proposed resolution, we
create a new platform where all parties can move forward by licensing
our patented innovations for future use in their products rather than
engaging in costly litigation."
Under the proposed resolution, Rambus will offer licenses with maximum
royalty rates for five-year worldwide licenses of 1.5% for DDR2, DDR3,
GDDR3 and GDDR4 SDRAM memory types. Licensees who ship less than 10% of
their DRAM products in the older SDR and DDR DRAM types will enjoy a
royalty holiday for those older types, subject to compliance with the
terms of the license. In addition, Rambus will offer licenses with
maximum royalty rates for five-year worldwide licenses of 1.5% per unit
for SDR memory controllers through April 2010, dropping to 1.0%
thereafter, and royalty rates of 2.65% per unit for DDR, DDR2, DDR3,
GDDR3 and GDDR4 memory controllers through April 2010, then dropping to
2.0%. This commitment to license at the above rates will be valid for a
period of five years from the adoption date of the Commitment decision.
All royalty rates are applicable to future shipments only.
Rambus management will discuss this development during a special
conference call on Friday, June 12, 2009 at 6:00 a.m. PDT. 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: (888) 203-1112 or (719)
457-0820 with ID# 4179468.
The European Commission originally brought charges against Rambus in
August 2007alleging violation of European Union competition law.
The Commission's investigation followed complaints set forth by certain
DRAM manufacturers originating with Rambus' 1992-1995 participation in
an industry standard-setting organization, the Joint Electron Device
Engineering Council ("JEDEC"). Similar charges had been pursued by the
Federal Trade Commission (FTC) in the United States. The FTC recently
closed its investigation following a series of U.S. Court rulings
underlining that the allegations of Rambus' wrongdoing were ill-founded.
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.
RMBSLN
SOURCE: Rambus Inc.
Rambus Public Relations
Linda Ashmore, 650-947-5411
lashmore@rambus.com
Copyright Business Wire 2009