Slashdot Mirror


Rambus Files Antitrust Suit Against Memory Makers

bender647 writes "Forbes reports: 'Chip designer Rambus sued several major computer memory makers Wednesday, claiming they illegally conspired to limit production and raise prices in an effort to block widespread adoption of Rambus' technology.' Rambus believes that RDRAM was not the success it should have been because chip makers did not want to pay their royalties."

28 of 398 comments (clear)

  1. insane by apocalypse76 · · Score: 5, Funny

    Ok, so thier trying to have other companies pay for thier own stupidity?

    1. Re:insane by Tackhead · · Score: 5, Funny
      > Anybody not see this coming from a company that patents ideas coming from a industry meeting, slipped their proprietary IP into open standards, sued the manufacturers of their products, and generally behaved as a two year old in the ethics department?
      >
      > Man, who would chose to work for this company?

      I hear Darl McBride'll be looking for work pretty soon.

      Apparently, someone told him he could still sue people who refused to pay the additional $69.90 for the stick of RDRAM that RAMBUS forgot to bundle with every $699.00 SCO OpenSewer License.

    2. Re:insane by antarctican · · Score: 5, Insightful

      But this one under the "duh" category.

      Rambus believes that RDRAM was not the success it should have been because chip makers did not want to pay their royalties.

      Duh. Two technologies, one free, the other having outrageous royalties... which would you pick? This proves that one does not have to be a genius to run a company.... And that royalties on technology is bad, m'kay?

  2. Shocking! by ePhil_One · · Score: 5, Funny
    Rambus believes that RDRAM was not the success it should have been because chip makers did not want to pay their royalties.

    I can't imagine why any manufacturer would have done a thing like that.

    --
    You are in a maze of twisted little posts, all alike.
  3. The real truth by imidazole2 · · Score: 5, Insightful

    The real reason RAMBUS wasnt a success was because it was so fuggin expensive! Why pay extra money for a motherboard that supports it to pay 2x-4x the amount for the RAM as well? Nearly doubles the PC cost!

    --

    -Imidazole2
    1. Re:The real truth by shepd · · Score: 5, Informative

      Worse yet, most RAMBUS had to be installed in pairs, while all other memory systems had switched over to single stick technology, doubling the cost.

      --
      If you could be told what you can see or read, then it follows that you could be told what to say or think - BoC
  4. Royalties? by slycer9 · · Score: 5, Funny

    The manufacturers didn't want to pay their royalties?

    Think about that for a second. 'We weren't successful because they didn't want to pay for it.'

    I tried that argument down at the Ducati dealer, didn't work there either.

    --
    Don't park drunk, accidents cause people.
  5. Don't want to spend. Imagine! by Anonymous Coward · · Score: 5, Insightful

    They say vote with your wallet. Until you do. Then they sue your ass.

  6. Priceless. by DShard · · Score: 5, Funny

    So I sue a set of companies who did not want to use a proprietary licensed technology over a open spec. I wonder if SCO's being giving them stupidity lessons.

  7. Huh? make up your mind. by genericacct · · Score: 5, Insightful

    They blame a conspiracy to raise prices, and then they say chipmakers didn't want to pay Rambus licensing. You can't have it both ways... it's obviously your own fault if your licensing is too expensive.

  8. Even if it were true... by Short+Circuit · · Score: 5, Insightful

    There's no reason not to expect RAM makers to retaliate after what Rambus did at that technology conference.

  9. Fuck You, Rambus. by Anonymous Coward · · Score: 5, Insightful

    People didn't adopt your technology because
    1) It sucked.
    2) It was highly overrated.
    3) It was overpriced.
    4) You are a deceitful bunch of motherfuckers who nobody trusts.

  10. Or just maybe... maybe... by Faust7 · · Score: 5, Funny

    Rambus believes that RDRAM was not the success it should have been because chip makers did not want to pay their royalties.

    Or maybe it was because it was too expensive and better alternatives existed?

    Ever consider that one, legal geniuses at Rambus?

  11. And the problem is who? by jared_hanson · · Score: 5, Insightful

    Rambus believes that RDRAM was not the success it should have been because chip makers did not want to pay their royalties.

    So, this it is clearly the chipmakers fault then, huh?

    Rambus should learn some basic business strategy. If someone comes out with a slightly less quality product, but sells it for a lot cheaper, that product will win. So, recognize the problem and lower your prices or significantly raise the benefits of paying them. In either case, don't resort to frivilous lawsuits if things don't go your way.

    --
    -- Fighting mediocrity one bad post at a time.
  12. That's rich! by Anonymous Coward · · Score: 5, Insightful

    The only company violating anti-trust laws was RAMBUS! Entering into a standards committe and submitting technology while secretly patenting it is not only evil, it's illegal due to antitrust law.

    And the reason their RAM cost so damn much is because of their royalty arrangements which most companies refused to enter into. And at the time RAMBUS was touting the profit margins on their products over DDR as a benefit and reason that companies should sell it!

    Bastards.

  13. Intel and Rambus by augustz · · Score: 5, Informative

    Intel was the company with the existing market clout that tried to force Rambus and their IP down everyone's throats.

    I realize that in business these days it is not normal to consider how much of a scum your business partners may or may not be.

    But for long term business I think it is worth review. We have to ask, in the end is the world going to be a better place because Intel and Rambus tried lock up a standards process in patents.

    Folks need a longer memory then they get from playing XBOX games. These companies have histories.

  14. Re:Who knows by Milican · · Score: 5, Insightful

    OK, lets entertain the idea for a while. The article is stating that the reason the prices were higher is because the manufacturers illegally limited production. By limiting production the price of any one unit goes up. Its like buying a 6-pack of eggs or a case of eggs. With quantity the price goes down. Maybe this is true, maybe not. The userbase was certainly there. The industry backing was certaintly there. Intel had several chipsets out for P3 supporting the memory (i820 and others), PlayStation 2 uses the memory, etc... Guess we'll see what the court says. Please try and be objective.

    JOhn

  15. I wonder.. by gonar · · Score: 5, Insightful

    did it ever enter their tiny little heads that the reason that their wunder-patent didn't sell as well as their very carefully crafted market research said it should have, might just have something to do with the fact that the CONSUMER (not the producer, they just pass the cost on) didn't want to pay their licence fee (100% price markup) for a product which provided minimal benefit in certain limited cases and a large handicap in a great many (more commonly encountered) cases?

    stupid corporation, hopefully they and all the other "IP" companies will go the way of the tyrannosaurus rex (i.e. screaming in agony as a giant fireball from space lands on their heads)

    --
    The difference between Theory and Practice is greater in Practice than in Theory.
  16. The SCO school of success! by jerky42 · · Score: 5, Funny

    Looks like they have been going to the SCO charm school. I bet SCO sues them for stealing business secrets.

    --
    The strong do what they can, while the weak suffer what they must.
  17. Stab by Glonoinha · · Score: 5, Funny

    "We have a fiduciary obligation to our shareholders to do something about this"

    Ok from now on whoever says this, gets stabbed in the throat. That phrase is hereby forbidden, under penalty of Throatgestabben.

    --
    Glonoinha the MebiByte Slayer
  18. Re:Sued for not working with a monopoly? by zoombat · · Score: 5, Insightful
    then it's somehow illegal when other companies decide to use other processes instead?

    It isn't simply that they decided not to use it, it's that they conspired with other companies in an illegal anti-competitive manner.. essentially saying, "I won't license with them if you don't." Or, at least that's what RAMBUS is claiming they did.

    Just like any company can decide they want to cell a doohickey for $1000 more than everyone else, but if they conspire with the other doohickey vendors to all raise their price by $1000 so they can make nice profit, it's illegal.

  19. anti-trust v. royalty pricing by daevt · · Score: 5, Informative

    for it to be an anti-trust issue, the companies would have had to have been purposefully colluding to effect the price (commonly called 'price-fixing') of the good (rambus memory). if they didn't produce large enough quantities to make rambus acceptible as a widely adopteble standard because the royalties made the technology inaccessibly priced (high royalties mean the profit margin shrinks, and can become negative...) , this is not a trust. the claims in the blurb are contradictory, and if they are the claims of rambus, then the case is trying to blame somebody else because a certain someone shot themself in the proverbial foot with excesive royalties...

  20. Re:Could someone explain... by kikta · · Score: 5, Informative
    I don't know the whole history of this Rambus thing. Could someone explain what they did so wrong? I keep hearing about "what they did at that technology conference."

    No problem.
  21. Re:Could someone explain... by PCBman! · · Score: 5, Informative

    They were in on the talks with the rest of the memory standards organization JEDEC. JEDEC's rules say that members must disclose all IP and licensing terms.

    Rambus not only didn't do that, they pimped their own knowledge of ram and techniques to speed up ram AND applied for/lengthened patents crucial to SDRAM and DDR SDRAM. When it started to become obvious that RDRAM was simply not going to make it in the market (Intel's RDRAM chipsets could NOT compete against it's own SDRAM chipsets--i820/i840 vs 440BX), Rambus decided sue anybody and everybody who produced SDRAM and DDR SDRAM but didn't buy licenses.

    Intel really didn't have anything that showed off RDRAM's abilities until they went dual channel with the P4's i850. At that time, RDRAM still cost too much and DDR SDRAM went dual channel soon after.

    Don't think the high cost of RDRAM was all to blame on the manufacturers and Rambus' license either. A lot of that was in the fabrication and packaging issues. At the time Rambus came out, SDRAM ran at 100/133 MHz while Rambus was at 800 MHz--really 400 Mhz DDR. So there were OBVIOUS electrical characteristics issues that had to be taken care of at the fab and package levels to bring yields up at a time when memory manufacturers were LOSING money per part. Had RDRAM come out sooner, or come out faster at a later date, things probably would have turned out differently.

    --
    So, when's lunch?
  22. The joys of being fabless by Politicus · · Score: 5, Insightful
    The real problem with Rambus was the they were competing in a market space against the very same companies that they required to make their products. Had they found the fab capacity to pump out RDRAM, it is very likely that prices would have come down. Technical advantage of RDRAM could then compete against DDRAM memory made by Infineon and others.

    This problem was evident from day one. The fact that they didn't go through the trouble to secure independent production capacity to keep the other manufacturers honest just goes to show that they wanted to have their cake and eat it too. Doing so would have slimmed RDRAM profit margins but definitely insured that lack of supply doesn't kill their product.

    It's a case of greed ruining their business model.

    I'm surprised that Intel bought into this mess. Just goes to show that for all their glitz, Intel can be a bunch of geeks sometimes.

    --
    Politicus
  23. Obligatory... (Re: insane) by Anonymous Coward · · Score: 5, Funny

    In Soviet Russia, Monopolist sues YOU for anti-trust!

  24. dang...another one of those "best case" issues by MoFoQ · · Score: 5, Informative

    Just like the RIAA, Rambus is blaming others for their own failures. The reason why Rambus (RDRAM) wasn't widely adopted was because it was an inferior product. Sure, in hypothetical and synthetic cases, RDRAM did outperform SDRAM, but in the real world, it got it's ass handed to them. (remember back in the day when Via had to fight Intel to be able to release a P3-compatible chipset using SDRAM? And how Via's low-end chipset was able to pounce Intel's expensive Rambus one and Intel eventually came to the realization that in order to compete, they would have to ditch Rambus). That combined with the expensive cost of RDRAM (even the ones maded by licensed RDRAM manufacturers like Samsung, etc.) and the disadvantage that you had to buy in pairs (talk about antitrust; "Sorry sir, you have to buy TWO copies of Windows for one to work.") or use a dummy stick which adds more cost and lackluster performance across real world appz (including games) lead to its demise. Not to mention, the abandonment by Intel which caused Rambus's stock to be cheaper than the Russian rubble (already used as toilet paper).

    If anyone, they should sue themselves for bad business practices. Oh wait, the stockholders did try to sue but later dropped it.

  25. False Troll by Anonymous Coward · · Score: 5, Informative

    The truth is Farmwald and Horwitz had already applied for patents at the time of the initial JEDEC meeting you discuss.

    That's okay.

    What comes next isn't. The two of them proposed what became the RAMBUS standard as a proposal to the working group. Still okay, but.... what these two sleezoids did next was to "neglect" to tell everybody that RAMBUS was proprietary would require royalty payments to what became RAMBUS.

    So everybody accepted the standard because RAMBUS was a decent idea. After adoption...POOF! "HEY GUYS! WE HAVE A PATENT ON THIS STUFF, AND YOU'RE GONNA PAY OUT THE ASS!"

    Funny how that worked.

    A judge heard the story and threw RAMBUS out of court on their RAMASS.

    And lets look at the trouble with RAMBUS 1) Expensive because (2) Yields were so low (3) because the technology is inherently low-yield (4) Oh, and while it delivers high bandwidth it has (5) Horrible latency.

    Please just go away. The RAMBUS company wasn't a company like you might imagine. It was simply a con game that tricked everybody.

    DDR 3200 today kicks RAMBUS's ass in performance and price.

    And oh, we don't have to pay a ridiculous amount to use it.

    Ask Intel. They basically screwed up by supporting RAMBUS. The public didn't want it.

    So go away. RAMBUS never had any advantages, and had oh-so-many disadvantages.