Federal Trade Commission Issues Remedy in Case against Rambus.Royalty Rate Imposed for SDRAM (Synchronous DRAM) A type of dynamic RAM (DRAM) memory chip that has been widely used since the late 1990s. SDRAM chips eliminated wait states by dividing the chip into two cell blocks and interleaving data between them. and DDR SDRAM Devices and Controllers, No Effect on DDR2 SDRAM Devices or Controllers LOS ALTOS, Calif. -- Rambus Inc. (Nasdaq:RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ), one of the world's premier technology licensing companies, today announced that the Federal Trade Commission (FTC FTC See Federal Trade Commission (FTC). ) has issued its order with respect to remedy in the matter against Rambus Inc. The Commission has issued an Order setting the maximum royalty rate that Rambus can collect on sales made of certain JEDEC-compliant parts after the Order becomes effective, as follows: 0.25% for SDRAM products; 0.5% for DDR SDRAM products; 0.5% for SDRAM memory controllers or other non-memory chip components; and 1.0% for DDR SDRAM memory controllers or other non-memory chip components. The Commission has further provided in its Order that these maximum rates will be in effect for three years, after which time the maximum rates will be 0%. The Order also mandates that Rambus offer a license for these products on terms set by the Commission, including a further cap on the non-memory rates that can be sought on broader systems. The Commission determined that its remedy would not apply to DDR2 SDRAM or other post-DDR JEDEC The division of the Electronic Industries Alliance (EIA) that deals with semiconductor standards (officially, the JEDEC Solid State Technology Association of EIA). JEDEC was formed in 1958 when the Joint Electron Tube Engineering Council (JETEC) split into two Joint Electron Device standards. "While we believe it appropriate that the Commission did not reach DDR (Double Data Rate) Refers to an SDRAM memory chip that increases performance by doubling the effective data rate of the frontside bus. For more details, see SDRAM. DDR - Double Data Rate Random Access Memory 2, GDDR GDDR Geographically Dispersed Disaster Restart GDDR Graphics Double Data Rate 2, or succeeding generations, we are nevertheless disappointed that the Commission's remedy with respect to SDRAM and DDR SDRAM continues to ignore the extensive findings of fact findings of fact n. (See: finding) made by its own Chief Administrative Law Judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. McGuire," said Tom Lavelle, senior vice president and general counsel for Rambus. "Because we strongly disagree with a number of the Commission's determinations, we plan to appeal its decision. We believe that a fair review of the underlying facts will restore the perspective of the Chief ALJ ALJ Administrative Law Judge ALJ Association for Legal Justice (Northern Ireland) who exonerated Rambus by dismissing the complaint." Rambus intends to move for a stay of the Order pending its appeal of both the liability findings and the remedy. Absent a stay, this Order will become effective in 60 days. The FTC brought antitrust charges against Rambus in 2002. Chief Administrative Law Judge Stephen McGuire held a three month trial on these charges in the spring of 2003, after which he dismissed the FTC's complaint in early 2004. Chief Judge McGuire's initial decision made over 1,600 detailed findings of fact in Rambus's favor. The FTC's own Complaint Counsel appealed this initial decision to the Commissioners, who have now rendered this decision with respect to remedy. For more information about the case, see www.ftc.gov, docket # 9302. About Rambus Inc. Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip architectures. Since its founding in 1990, the company's patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus' technology and products solve customers' most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard interface products. Headquartered in Los Altos, California Los Altos (IPA: [lɔs ɑltos]) is a city at the southern end of the San Francisco Peninsula, in the San Francisco Bay Area. The city is in Santa Clara County, California, United States. , Rambus has regional offices in North Carolina, India, Germany, Japan, Korea, and Taiwan. Additional information is available at www.rambus.com. RMBSLN |
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