Rambus entitled to compensation for infringement based on fair and
reasonable royalty rates
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Rambus Inc. (Nasdaq:RMBS), one of the world's premier technology
licensing companies, today announced that the judge for the Northern
District of California (NDCA) has issued his decision in the matter with
SK Hynix. The Honorable Ronald M. Whyte has found that the Rambus
patents in this case are valid and infringed by SK Hynix and Rambus is
entitled to receive royalty payments for past infringement based on
reasonable and non-discriminatory (RAND) rates.
"This is a positive result as it is consistent with what we've been
seeking all along — reasonable compensation for the use of our patented
inventions," said Thomas Lavelle, senior vice president and general
counsel at Rambus. "We appreciate the Court's extensive efforts in
working through years of complex arguments. While this decision does not
provide SK Hynix with a going-forward license, we are hopeful it will
lead to putting this matter behind us completely and allow us to reach
reasonable agreements."
In his ruling, Judge Whyte found that Rambus executed its document
retention practices during a time when it reasonably anticipated
litigation, and thus willfully spoliated evidence, but also found that
Rambus did not deliberately destroy documents it knew to be damaging.
The parties have been ordered to provide briefs on the issue of the
damages SK Hynix will need to pay Rambus.
Rambus management will discuss this decision during a special conference
call on Monday, September 24, 2012 at 6:00 a.m. PT. 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 the ID# 34575979.
Background of the Matter
This case was originally filed by SK Hynix against Rambus in August
2000. The case was split into three separate phases with Rambus
prevailing in all three phases. The first phase considered SK Hynix's
allegations that certain Rambus patents should be unenforceable under
the doctrine of unclean hands and spoliation.
The second phase addressed Rambus' allegations that SK Hynix memory
products infringed its patents. The jury in this phase upheld the
validity of Rambus' patents and found that SK Hynix memory products
infringe all Rambus patent claims in this case. The jury awarded Rambus
damages in the amount of $397 million.
In the third phase of the case, SK Hynix (together with Micron and
Nanya) alleged Rambus engaged in antitrust and fraud during its
participation in a standard-setting organization called JEDEC in the
early 1990s. A jury in this case, again, found in favor of Rambus,
finding it had acted properly during its participation in JEDEC.
SK Hynix's appeal of these decisions led to a Court of Appeals for the
Federal Circuit 2011 ruling vacating the NDCA court's final judgment and
remanded the matter for reconsideration. In this decision following
reconsideration, Judge Whyte found that SK Hynix may have been
prejudiced by the alleged spoliation, and thus imposed a sanction on
Rambus, limiting royalties to those which are reasonable and
non-discriminatory.
About Rambus Inc.
Founded in 1990, Rambus is one of the world's premier technology
licensing companies. As a company of inventors, Rambus focuses on the
development of technologies that enrich the end-user experience of
electronic systems. Its breakthrough innovations and solutions 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. Additional information is
available at www.rambus.com.
RMBSLN
Rambus Inc.
Linda Ashmore, 408-462-8411
linda_ashmore@rambus.com
Carolyn
Robinson, 408-462-8717
carolyn_robinson@rambus.com
Source: Rambus Inc.
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