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Rambus Loses $4B Antitrust Case

UnknowingFool writes "In a vote of 9-3, a jury found that Micron and Hynix did not collude to manipulate DRAM prices in a violation of California anti-trust law against Rambus. The jury also ruled that the Idaho based Micron and the South Korea based Hynix did not interfere with Rambus' relationship with Intel. On the first point, Rambus argued the two chip makers conspired to keep Rambus RDRAM prices high while artificially keeping their SDRAM prices low. Micron and Hynix countered that high RDRAM prices were due to technical problems of the design. On the second point, an Intel manager testified that Rambus contract stipulations soured the relationship. The clause that Rambus insisted and would not waive was that to use Rambus RDRAM, Intel had to agree to give Rambus the ability to block Intel processors if Rambus felt Intel was not promoting RDRAM sufficiently. Rambus initiated the suit and the $4B was how much Rambus calculated it lost in profits."

14 of 112 comments (clear)

  1. Rambus... by ackthpt · · Score: 4, Interesting

    The leech that used the courts.

    No hard feelings, eh?

    --

    A feeling of having made the same mistake before: Deja Foobar
  2. let us not forget Rambus stole it by swschrad · · Score: 4, Informative

    it has been well-established that Rambus ran off to patent a developing industry standard in RDRAM, stealing what was to be a public standard. they can rot in hell with 640K, they have it coming. got all the morals of Darl McBride and his little troll company.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
    1. Re:let us not forget Rambus stole it by Attila+Dimedici · · Score: 5, Informative

      The way I understood it (which does not make it any better) was that when the standard was being developed they said, "We've got this nifty-neat idea that we think would solve this problem in the new standard." Everybody else said, "Yeah, that will work." Then after the standard was established and everybody was working on moving over to it, Rambus said, "Oh, by the way, we have a patent on that essential piece of this new standard and everyone will have to pay us license fees to use it."
      I may be mistaken and your take may be more accurate, but either way, it is good to see such scum lose in court.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    2. Re:let us not forget Rambus stole it by Solandri · · Score: 4, Interesting

      That's pretty much it. JEDEC required all participants to disclose any patents or pending patents on technology being discussed. That was the whole point of JEDEC - so memory manufacturers could weigh the technical merits of ideas against their licensing costs, and decide together whether or not it should go into the next standard. Rambus did not disclose, causing some ideas they had (secretly) patented to wind up in the standard under the assumption that there was no licensing cost.

      The courts actually found that Rambus was in breach of contract for violating JEDEC's membership guidelines this way. The problem was, that was just a contractual violation, not a legal one. JEDEC's guidelines did not specify what sort of punishment should befall any company which did secretly patent the technology under discussion. So even though RAMBUS was guilty of breach of contract, the only recourse left to JEDEC was to kick Rambus out. The patents, despite being obtained through or having their importance magnified by deceit, were still legally sound.

      Basically, JEDEC relied on the honor code for its members to behave. Rambus took advantage of that to secretly misbehave and screw everyone over. Unfortunately, the anti-trust investigations into memory price fixing came soon after, and under the two-front assault most of the memory manufacturers settled with Rambus, which allowed them to drag this on for as long as it has.

  3. Re:.... and it's not the only leech by Billly+Gates · · Score: 5, Informative

    Rambus is or was pretty evil.

    Didn't they go out of business? First they attended the sdram IEE conferences where the design of SDRAM was discussed and how all the memory chip makters would make it back in 1992. Rambus immediately called the headquarters and patented the whole spec on purpose to sue everyone out of existence to force their own proprietary design.

    Then they gave away 25% of their shares to Intel below market value in exchange for using only Rambus ram. Intel woudl get billions in kickbacks if SDRAM went out of existence and gave a financial incentive.

    Then they sued everyone and if it were not for AMD Rambus would be the next monopoly in ram. AMD still used Sdram which many of us preferred over the high latency and $$$ rambus. They lost and thank god. We would be stuck with $200 512 meg ram chips today with just rambus existing and probably no flash drives.

    They were worse than MS in my opinion and filled with greed.

  4. Rambus lost $4 Billion suit... by demonbug · · Score: 4, Insightful

    And there was much rejoicing.

  5. Thats one hell of a clause... by Local+ID10T · · Score: 4, Insightful

    an Intel manager testified that Rambus contract stipulations soured the relationship. The clause that Rambus insisted and would not waive was that to use Rambus RDRAM, Intel had to agree to give Rambus the ability to block Intel processors if Rambus felt Intel was not promoting RDRAM sufficiently.

    Wow. I'd have told them to F off too...

    --
    "You want to know how to help your kids? Leave them the fuck alone." -George Carlin
    1. Re:Thats one hell of a clause... by ChrisMaple · · Score: 4, Interesting

      AMD had superior processors for several years. Motherboard and name brand computer manufacturers were too slow to incorporate AMD's product, and to some extent AMD was production limited. Part of the reluctance of computer manufacturers to shift to AMD was due to (illegal) contracts restricting the manufacturers to exclusive use of Intel processors.

      By the time AMD had gained significant market share, Intel was starting to recover from its design blunders and challenging AMD's performance dominance. For AMD, the gain in market share had come too late to enable them to make the gains stick.

      Intel has the cash and intelligence to stay a generation ahead in silicon technology. For Intel to lose the performance lead again, they'd have to make a clusterfuck like the P4 again.

      --
      Contribute to civilization: ari.aynrand.org/donate
  6. Clarification of Summary by Bill+Dimm · · Score: 4, Informative

    Intel had to agree to give Rambus the ability to block shipments of Intel processors if Rambus felt Intel was not promoting RDRAM sufficiently

    Summary gets confusing when you leave words out.

  7. Re:.... and it's not the only leech by ackthpt · · Score: 5, Interesting

    Rambus must have some sort of war chest for suits and appeals. They've been at it for over a decade. By appearance it seems they're developing Lawyer Technology rather than memory technology.

    While the potential of a $12 billion or even $4 billion pay off might be considered mouthwatering, they'd probably have made that kind of money by now if they were putting all their money into R&D, manufacturing and licencing of revolutionary technologies.

    It may look like thinking bit, but it's really very negative, thinking small.

    --

    A feeling of having made the same mistake before: Deja Foobar
  8. Re:.... and it's not the only leech by TheWanderingHermit · · Score: 5, Interesting

    You've described it pretty well. One of their earliest cases was in Richmond, VA and I sat in to videotape a lot of the depositions. (That's how long it's been going on -- VHS and SVHS were still in use when they started suing everyone. That was around 2000-2001.)

    They admitted in depositions they were in on the meetings when the standards were drawn up and had no reason for not objecting to designs that were supposedly theirs.

    I have to admit, the Rambus lawyers were polite and easy to work with. The lawyers for the other company (a German firm) were mostly from one New York office and were just plain rude and nasty.

    I remember one deposition in particular where there was a top memory expert giving testimony and they asked him about flip-flops and if they were memory. They (the Rambus lawyers) were trying to get him to say a flip-flop was a one bit memory and he kept saying, "Under certain conditions." The lawyer was stumped and started getting worse and worse (the only time I saw a Rambus lawyer start to get nasty) because he not only couldn't get him to give the answer they wanted, but the lawyer had no understanding of what any Electronics 101 student would know. I had a hard time not laughing and shaking the camera during the time that topic was being covered. It was pretty clear to me that lawyer had not fully prepared and didn't know at all what the topic was with flip-flops. I would have loved to have stayed in that one all day, since I figured it would only get more technical and confuse the lawyer even more, but someone took my place so I could finish some editing.

  9. Re:Rambust by billcopc · · Score: 4, Insightful

    They helped to advanced the industry by patenting once-public ideas ? I cannot agree with that statement on any level.

    If anyone should be accused of articially maintaining high RAM prices, it's Rambus. Their trolling and subsequent royalty racket has cost the world far more than 4 billion, not to mention the costly and frustrating period where Intel boards exclusively supported Rambus. That move alone set the SDRAM industry back a few years.

    Rambus is the perfect example of how NOT to run a tech company. Leave IP theft to the Chinese, at least they don't patent the stuff they steal.

    --
    -Billco, Fnarg.com
  10. Re:.... and it's not the only leech by thue · · Score: 5, Informative

    > Then they sued everyone and if it were not for AMD Rambus would be the next monopoly in ram. AMD still used Sdram which many of us preferred over the high latency and $$$ rambus.

    It was not just AMD which used SDRAM. Other companies made chipsets and motherboards which worked with Intel CPUs and used SDRAM.

    As RDRAM failed to match SDRAM technically and price-wise, Intel was saved by their competitors selling Intel-compatible chipsets, for otherwise few people would have bough Intel CPUs. Because Intel was contractually obligated to only ship RDRAM-compatible motherboards.

  11. Ha! I remember Rambus. by Anonymous Coward · · Score: 5, Interesting

    I was just starting in the IT industry when Rambus came out. Part of my quiz as a low-level tech for my first IT job was to ID some pieces of hardware. I had been building PCs using AMD & SDRAM for quite a while, due to how cheaper they were vs. Intel. I was handed a Rambus chip, and my exact response was:

    "It's memory, and it has a heatsink. Either it's high-performance, or very inefficient"

    Got the job, and I soon learned it turned out it was the latter. I saw how much Rambus sucked firsthand, and was glad when regular DDR RAM started to take its place. Farewell, it wasn't nice knowing you.