Samsung Settles With Rambus In Patent Dispute

Tackhead writes "After almost a decade of legal wrangling, Samsung has settled with Rambus over the antitrust case, regarding allegations of price-fixing for DDR and SDRAM memory, that was scheduled to proceed this month. (Here is a half-decade-old summary of the twists and turns of the case.) As part of the settlement, Samsung agrees to purchase $200M in Rambus stock, pays $200M in cash to Rambus, plus $25M per quarter for the next 5 years in licensing fees. No immediate word on the implications for Micron or Hynix."

Comments

Missing a detail

[girlintraining]

Hey, where's my check for having to pay for all of this crap in the form of higher memory prices? So we have some elephant mating going on between Samsung and Rambus -- that's cool and all, I'm sure it'll be great for... innovation... or... something, but if there is evidence of price fixing then why is the government not asking for the terms of the settlement as proof of conspiracy to defraud and prosecuting? This isn't "self-regulation" of the market -- this is "let's get out of here before mom gets home".

Re:Missing a detail

[Corporate Troll]

Look at it another way.... Perhaps Samsung gets some access to the patents of Rambus. Don't forget Rambus was a serial memory protocol. Everything in the x86 architecture is going serial, be it USB or PCIe. It's simpler to manage for interference. It might lead to better memory technology and if Samsung isn't being a bitch, it might be for the better of all of us.

The only Rambus machine I ever had was a dumpster diven P-IV 1.9GHz with 512Meg RAM. No way to upgrade the RAM because even on eBay RD-Ram was out of price. It's relegated to server duty at a proto-geek friend of mine. However, it was a rock-solid machine.

Perhaps, just perhaps, if Samsung plays this right (and has the patents), memory technology might take a significant advance....

Probably just dreaming... *sigh*

Bah, why couldn't it be lose-lose?

[Chris Burke]

RAMBUS *spit* used deception to get a global DRAM standard encumbered by their bullshit submarine patent.

The Dramurai fought back with price fixing and collusion to lock RAMBUS out of the market.

They both suck, and the only outcome I'd be happy with is one where they both lose. Don't ask me to explain it rationally, but I'd have even been happier with one where only RAMBUS loses. I guess I just hate the patent bullshit they pulled and what they tried to do with the DRAM market more than what Samsung et al tried to do.

Rambus is still around??

[XanC]

How do we correct this error?

Insane

[RelliK]

The patent system needs major reform to prevent things like this from happening. For those who don't know, Rambus is a patent troll. The short summary of this long saga is as follows:

For years it sat on the board of JEDEC, just as the standards for SDRAM and DDR-SDRAM were being set. It made no suggestions but kept notes. JEDEC rules require that all members disclose their patents. Rambus did not disclose that they had related patents pending. Instead, it tweaked the patent applications to make sure that the upcoming standard would definitely infringe. Never mind the fact that it did not invent anything and the DDR RAM was merely an application of existing inventions to RAM production. But Rambus was granted the patents anyway and went off trolling RAM manufacturers.

It is absolutely disgusting that the system allows people who produce nothing to extort those who actually make things. The best line of business is a patent troll. If you win, you win big. If you lose, the shell company has no assets anyway, so there is nothing to lose.

Re:Insane

[rabtech]

You should dig into the details of the case in depth, more than what you've read on slashdot. RAMBUS did do some shady things, but let us not forget that all the major memory makers plead guilty to price fixing and collusion. Some of their executives went to jail. They paid the largest antitrust fines in the history of the USA. We also have documented proof that they admitted (in regards to RAMBUS) that "all memory will be made this way ... hopefully without the royalties going to RAMBUS".

Perhaps it is likely that RAMBUS was not really welcome on JEDEC because the major memory makers knew their patents applied to the technology and wanted to avoid paying royalties.

Whatever the truth is, RAMBUS is not a patent troll by any means. They do real R&D to develop legit memory technologies, which is legitimately licensed by manufacturers. And in fact without the use of techniques RAMBUS pioneered, we would not have DDR/DDR2/DDR3. They just haven't necessarily played nice or avoided doing shady things. That doesn't make them an IP holding company that snaps up patentns with the goal of trolling larger companies.

Re:Insane

[Chris Burke]

You should dig into the details of the case in depth, more than what you've read on slashdot. RAMBUS did do some shady things, but let us not forget that all the major memory makers plead guilty to price fixing and collusion. Some of their executives went to jail.

No, I don't forget what assholes the DRAM manufacturers were, but it doesn't change one bit what Rambus did either and the OP's summary of rambus' actions is completely correct.

Perhaps it is likely that RAMBUS was not really welcome on JEDEC because the major memory makers knew their patents applied to the technology and wanted to avoid paying royalties.

They didn't apply until rambus changed them in the middle of the JEDEC discussions. "Welcome" or not they were there and did not disclose their patents as required. You'd think that if rambus was on the level and wanted to make sure their royalties were paid, they would have mentioned their patents. But then jedec might not have used that technology, and what good would that do rambus? "Perhaps" (in the same sense as "I imagine") the memory makers knew about the patent; it's 100% certain that rambus did and yet said nothing.

Whatever the truth is, RAMBUS is not a patent troll by any means. They do real R&D to develop legit memory technologies, which is legitimately licensed by manufacturers. And in fact without the use of techniques RAMBUS pioneered, we would not have DDR/DDR2/DDR3.

Oh PLEASE. Chip-to-chip interfaces were already using both edges of the clock and it was obvious DRAM was heading the same way, the "techniques" for doing so were already well established. If not for rambus, we'd still have DDR and successors, because that's what jedec was going for despite rambus' contribution to the committee, which was nothing.

Rambus may not be a perfect example of a patent troll who just buys up other patents, but their behavior of sitting quietly on their patents until years later when products that violate them are ubiquitous then suddenly leaping up and crying foul matches the rest. "Patent submariner" is almost as bad as "patent troll" to me. They're both flagrant abuses of the patent system.

They didn't do as much quality R&D as you may think they did, either. It was Intel who actually did most of the work on figuring out how to make rdram actually work.

Then the memory makers showed they could be even bigger assholes, and got their just deserts. Again, why this should improve my opinion of rambus, I don't know, because it doesn't change anything they did.

Really? A *Billion Dollars* for Rambus? Fuuuu!

[Dr. Spork]

If you add up Samsung's payout on this deal, it's damn close to a billion US Dollars. Wow, it took some time, but I guess that patent trolling paid off for Rambus after all. They'd never raise that kind of money the old-fashioned way, by making products that people willingly buy.