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Rambus Found Guilty of Fraud

Joby Walker writes: "The jury in the Rambus v. Infineon case has found Rambus guilty of fraud in regard to their actions within JEDEC. Infineon was awarded $3.5M in punitive damages, but that has been reduced by the judge due to Virginia Law." Rambus says they'll appeal.

22 of 157 comments (clear)

  1. Re:michael by shogun · · Score: 3

    The link in trhe comment above deserves a thorough read before you start hitting it with your mod points.

  2. There's a difference by unicorn · · Score: 5

    between the laws being bad, and the laws being badly applied.

    Personally, I don't have any problem at all, with companies being able to patent, and profit from their inventions.

    This case was all about a company suckering an entire industry into using their ideas in a standard. Then after the standard is widely adopted, and prohibitively expensive to back away from, the pop out with a patent that everyone is now in violation of. It's not about patent law being bad, it's just about sleazy business practices.

    --
    "Politicians are interested in people. Not that this is always a virtue. Fleas are interested in dogs." P.J. O'Rourke
  3. Re:Why a damages Cap? by Samrobb · · Score: 5

    Looser pays winner's court cost? No, thanks. Big Hairy Corp would probably consider it a small investment to spend that additional 100K intimidating you by keeping you in court for a year or two. Yeah, you get your money back... but you've lost time, sleep, and gained nothing but stress over it.

    Also... heaven forbid that you are the one to bring suit against BHCorp... you had better be damn sure you will win, because you sure as hell can't afford to pay their legal bills.

    "Looser pays" only works if the two litigants have roughly the same assets. Once you get into a huge disparity, the side with the most money wins, because they cn afford to litigate in order to gain advantage, whether or not they win.

    Now, if the proposal was "looser pays winners court costs, up to the amount that the looser spent in court", then you've got something that might work. If BHCorp spends $10,000,000 suing me, and I spend $1,000 defending myself and loose... well, I owe my lawyer $1,000, and BHCorp $1,000 towards their court costs. If I win, they have to shell out an additional $1000 to cover my court costs.

    Overall, I think this is a better solution... the more you spend to try and win a case, the more you risk loosing.

    --
    "Great men are not always wise: neither do the aged understand judgement." Job 32:9
  4. Patents not a "right"... by augustz · · Score: 5
    Companies have got to realize patents are not a "right", they are a favor granted by goverments.

    Not so they can get rich by extorting others who are actually innovating by pushing a lot of paper.

    And rambus pushes a TON of paper. For Q2, Rambus's legal bill was $7.3 million! I leave it to you to imagine the amount of paper that buys.

    Rather, patents are a favor granted to benefit we the people with better products at lower rates.

    Companies screaming about being robbed and having their "rights" violated (in this case by members of a jury of americans) should remember, those rights are there to serve us, not you.

    Legit companies should be getting in to stop patent insanity, lest we (and crazy hippy protestors) throw the baby out with the bathwater.

    This ruling does me good. Any way we can contact the judge and send him chocholates?

  5. Re:Well, finally! by werdna · · Score: 5

    It's been beaten to death on /. but the stupid patent laws have to go! This is at least a step in the right direction. I hope the trend continues.

    Seems to me that the consensus here is that the patent system and courts worked just fine in this case.

  6. Re:Why a damages Cap? by JoostT · · Score: 3

    In the Netherlands you do get court costs awarded, only they are not the real costs but a statutory amound depending on the number of court meetings and how complicated the case was. A typical court case will cost (in court costs) about $ 1000. No way you can pay a lawyer with this. It stops people from bringing lawsuits and gives negotiating a much bigger appeal.

    Joost

  7. JEDEC Enforcement? by mati · · Score: 5
    From http://news.cnet.com/news/0-1003-200-5878071.html:
    Under the organization's rules, Rambus was required to disclose that it had patents that potentially entitled it to royalties for DRAM and DDR DRAM. It didn't. Rambus, however, defended itself by stating that the rules were unclear and not enforced by JEDEC. Evidence uncovered during the case showed that JEDEC's enforcement procedures were less than perfect.
    Some please explain, how is a standards committe supposed to "enforce" disclosure rules? Either you abide by the rules, or you break them and get sued later, right?
  8. Innovation... by AMuse · · Score: 5

    Did you notice in the article that they're citing that this law will slow innovation because people can no longer patent standards?

    It seems to me that companies in court these days are using the word "Innovation" like the boy who cried wolf. If it can't be used to churn a profit, it's stifling innovation. First microsoft bashing GPL and Open Source products, now Rambus.

    "Stifling Innovation" is the newest buzz-word for "We don't like it and we can't profit off it".

    Here, guys. Let me help you out.

    http://www.dictionary.com/cgi-bin/dict.pl?term=inn ovation
    ----------------------------------------- ---------

    1. Re:Innovation... by sracer9 · · Score: 5

      Well said. I can't say that I agree with all the companies citing evolutionary advancements as "innovations". It seems to me that the real innovations are getting farther & fewer between nowadays. One that I can think of, and I'm sure some will disagree, is Linux. Not just the kernel, but the kernel and all packages available for it and the whole way they came to be. Worldwide development over the internet of a free OS? With souce code available? No central company behind it? Nothing but a bunch of uber-geeks working on it in the spare time because they believe it? Must be something of a precedent.

      Just my .02

      --

      No thanks. I don't smoke anymore.
    2. Re:Innovation... by sv0f · · Score: 4

      The more jealously garded IP is, the less useful it is.

      Large US companies are starting to recognizing the truth of this statement. For example, I have it on good word that the Coca Cola company is about to GPL the formerly-secret recipe for Coke. The slogan will be changed from "ain't nothing like the real thing" to "free as in Coke".

      (The Escobar family is reportedly considering suing over copyright/trademark infringement, filing suit in the US because our court system is much more naive and easily influenced than the Columbian legal system.)

  9. More respect if the chips were RAMBUS brand? by yerricde · · Score: 4

    Sure, it's nice to say that a company should "make things". However, the business model that Rambus (and Lucent, et al) uses is not necessarily flawed. A company dedicated to pure tech research can probably churn out ideas much faster than one also burdened with actually implementing those ideas.

    Well, if Rambus wanted not to have a perception of "a company whose product is lawsuits," it could have structured its business model more like Transmeta's. A company gains a lot more respect if its trademark is the PRIMARY trademark on a widely used product. Transmeta achieves this by contracting work out to fabs and then putting the TRANSMETA CRUSOE name, not some fab's name, on the end product.

    By licensing these patents to manufacturers, a Rambus or Lucent can focus on improving the technologies they already have and creating new ones along the way.

    But by putting its own name on the product, it potentially gains more street credibility with the "information wants to be free" crowd.

    --
    Will I retire or break 10K?
  10. NOT GUILTY!! by www.sorehands.com · · Score: 5
    This is a civil case. Guilt or innocence is a criminal standard.

    They were found to be liable.

  11. Re:Remember...? by connorbd · · Score: 3

    You realize that such a reasonable, well-thought-out post utterly blows away any aura of psychohood that you might have been working to achieve with a handle like Dancin Santa, don't you?

    RDRAM is interesting from a technical standpoint anyway, since it seems to represent the same philosophy that's leading to USB replacing paralell connections for printers and such: sooner or later, it doesn't matter worth a damn how wide your pipe is as long as you can slam data through fast enough to get where it needs to be. Whether back-burnering latency issues is a productive way to go I don't know; I'm not a sandbender. But it's not a bad idea technically, if you can get it to work. The real question is whether it was ever necessary in the first place; latency or not, you still have to slam the data through fast enough. The question thus becomes not whether it's a good idea, but whether it can be pulled off. So far, Rambus hasn't quite done it (it's all a blur above half a gigahertz anyway) and it doesn't look like they're going to have the chance to.

    /Brian

  12. Talk about forward-looking statements . . . by MaxGrant · · Score: 5

    I think this can be safely classified as a completely unexpected result. Careful, patent litigators. The sword you hold isn't just double-edged -- it's got no fuckin' handle either!

  13. Samsung will be loving this by RedWizzard · · Score: 3
    One of the more interesting revelations in this case is that the license Samsung signed includes an out clause (from the article):
    Samsung Electronics Co. can stop paying SDRAM and DDR royalties to Rambus if a court in any geographic region of the world determines that any company does not infringe the synchronous patents.
    That suggests that Rambus really grovelled to get a license signed with Samsung. I imagine the payments have already stopped.
  14. Re:michael by ZeroConcept · · Score: 3

    Where are those mod points when I need them? This accusation deserves an answer.

  15. In closing... by ackthpt · · Score: 5
    Rambus Counsel: "Ladies and Gentelmen of the jury, please do not let Rambus' patent applications on 'inhaling' and 'exhaling', and subsequent royalties each of you will be held to pay, sway you from your duty in finding my client free of any wrong doing."

    Excepting Ex-President Clinton, whom only pays half, as he never inhaled.

    --

    --

    A feeling of having made the same mistake before: Deja Foobar
  16. I'll be damned! by HongPong · · Score: 3

    Something constantly complained about on Slashdot actually got its just desserts! Perhaps MS will meet its end and the RIAA will dissolve into puffs of anti-trust legislation... Dream on, you crazy, idealistic nerds...

    --

  17. Thank god... by Kasreyn · · Score: 5

    Maybe this will set a precedent to help destroy the "frivolous lawsuits rather than honest work" business model.

    Awww, poor widdle Rambus. Couldn't sue all your competition out of business. Crap! Now you'll have to, like, commit yourselves to making quality products to increase market share. That's gotta suck. Competition is soooo unfair, right guys?

    -Kasreyn

    --
    Kasreyn: Cheerfully playing the part of Devil's Advocate to hairtrigger /. flamers since 1999.
  18. Not quite as good as it seems, but still good by localroger · · Score: 4
    It's worth noting that what Rambus got slammed for was lying to the JEDEC committee about whether it planned to patent the technologies it was proposing for the standard. Unfortunately, this does not touch on their right to sue everyone who ever manufactured a RAM chip for patent infringement.

    I personally see patents as being a useful and even necessary evil in a capitalist world, but our own patent office has gone completely off its rocker in the last couple of decades. This bitchslap would have been much more satisfying if it had been for the fraudulent act of suing everyone in sight over something that obviously should never have been patentable in the first place since it was clearly described in prior art.

    --
    Brackets contain world's first nanosig, highly magnified:[.]
  19. Re:This isn't good because it was Rambus.... by Dancin_Santa · · Score: 3

    Sure, it's nice to say that a company should "make things". However, the business model that Rambus (and Lucent, et al) uses is not necessarily flawed. A company dedicated to pure tech research can probably churn out ideas much faster than one also burdened with actually implementing those ideas. By licensing these patents to manufacturers, a Rambus or Lucent can focus on improving the technologies they already have and creating new ones along the way.

    However, Rambus managed to ire the entire industry and will now suffer from the industry's lack of support. No support == no contracts == no money.

    Rambus was a smart idea that was implemented in possibly the worst possible way. They positioned themselves as the 'gatekeepers' to memory production, but through their actions completely turned the rest of the memory industry against them.

    Dancin Santa

  20. Cleaned up news... ;) by Obliqueness · · Score: 5
    The article's quote from Rambus' CEO...

    "Today's verdict, if allowed to stand, poses a serious threat to all technology {litigation} companies that try to protect their {obvious} inventions through our intellectual property laws {that we paid good money for}. It puts innovators {10^H, litigators}at risk of forfeiting their intellectual property rights {6^H, racket} by simply attending meetings of a standard setting committee {and misleading them about your technology, to sucker them into accepting it as a standard}.

    hehe, PR statements are fun to play with...
    --
    The American Dream went to hell in a handbasket when someone decided that "The Customer" was King, and the customer beli