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BusinessWeek Examines the Rambus Legal Saga
An anonymous reader writes "Now that three companies have admitted to colluding to fix DRAM prices in what has turned out to be a global conspiracy BusinessWeek takes a look at the why. The most recent to admit guilt was Samsung and no one, as yet, knows precisely why they did it. The short answer seems to be because they didn't want Rambus' memory technology, DR-DRAM to succeed in the market. The more complicated answer is that now that Samsung, Infineon and Hynix have all admitted to fixing prices, they're now lawsuits from Rambus alleging that their motivation was to "kill Rambus" by making it too expensive for it to be attractive for PC manufacturers. Today in San Francisco, lawyers for Rambus are going to argue for the release of a set of documents currently under seal, that they think could go a long way toward proving their case. If nothing else, the timing of the price-fixing, which ran from 1999 to mid-2002 is suspicious, because that was about the same time that the DRAM companies would have been resisting pressure to adopt Rambus."
Greedy Bastards
While the collusion of established companies to wipe out newcomers is nothing to dismiss, you can't portray Rambus as a pure, innocent victim. If you recall, Rambus silently filed patents (for a relatively obvious concept) then submitted similar proposals to an ostensibly open forum of RAM manufacturers. They waited until their standards were adopted before filing suit to bilk the other manufacturers out of their profits. Indeed, Rambus could be considered a standard "patent factory" -- a company that produces nothing and relies on the patent system to siphon profits from the people who do actual development.
Unfortunately, this is what you get when you pretend to support capitalism but actually have your government artificially subsidize all sorts of companies (through patents, tax breaks, and freedom from the responsibilities individual humans have). The successful companies are the ones who maximize their profits, and if there are minimal negative consequences for some vile act, they'll perform it eagerly. [end of rant]
Rambus hasn't been playing by the rules either. They've been penalized for destroying documents, http://arstechnica.com/news.ars/post/20050302-4664 .html
and are suing Samsung immediately after revoking their liscence.
http://news.zdnet.com/2100-9584_22-5734443.html
It seems as if the entire industry is corrupt.
Someone save me from this sanity.
Well, at least the sharks do something useful, which is more than I can say for the lampreys.
No folly is more costly than the folly of intolerant idealism. - Winston Churchill
Intel wanted everybody to move to RDRAM, and tried their best, in their quiet, shy retiring way, to get all the motherboard manufacturers to switch. It was the high-end motherboard buyers (you know, the type who read Tom's Hardware every day) who refused to have anything to do with RDRAM, and cost was the least of their considerations. That's why DDR won, even as the prices were rising.
No folly is more costly than the folly of intolerant idealism. - Winston Churchill
There still is a US DRAM manufacturer. Micron is still alive and kicking (and has been continuously in business since 1978), selling to consumers via the Crucial brand. There was price-fixing (which Micron doesn't seem to be completely innocent of, either), but one thing to keep in mind is that RDRAM, even if it weren't patented, required approximately 5-7 extra mask steps to create, as compared to DDR DRAM. In the cut-throat world of DRAM manufacturing, where every penny counts, this is a deal-breaker. Samsung was able to make money off RDRAM only because it was so expensive. Was it illegal for these companies to team up and kick down RDRAM? Yes. Am I sad to see it go? No way.
The thing is that they were in JEDEC, the consortium where companies decide on standards for things like RAM. JEDEC rules are set up to prohibit what Rambus tried to do, i.e. get stuff that they'd patented written into the standards, and once everyone is committed to it, say "Surprise! We hold the patents to X, Y, Z, so all your profit are belong to us!"