Rambus stock jumps on news of EU settlement - Silicon Valley / San Jose Business Journal:

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Los Altos-based Rambus (NASDAQ:RMBS) said under the proposeed resolution, the commission wouldx make no finding of liability and no fine would be while Rambus would commit to offer licensea with maximum royalty rates for certain memory types and memory controllersgoing forward. Rambus stock rose 15 perceng Friday, closing at The European Commission originally brought charges againsy Rambus in August 2007 alleging violation of Europeah Unioncompetition law. The commission’s investigation followed complaints set forth by some DRAM manufacturers originatingwith 1992-1995 participation in an industry standard-setting organization, the Joint Electrob Device Engineering Council.
Similar chargess had been pursued by the Federap Trade Commission in theUnited States. The FTC recently closer its investigation following a seriesof U.S. courg rulings in Rambus’ favor. European Commission antitrust procedures stipulate that a final decision must be precededf by a consultation of interesteds third parties on the termse of thecommitments offered. “Our view regarding standard-setting organizationxs is that the rules of such organizations must be writtemand clear, and that there should be consequenceds if such clear written rules are violated,” said Thomasw Lavelle, senior vice presidenty and general counsel at “We did nothing wronv during our participation in the JEDEC standard-setting organization, as demonstrater in multiple U.
S. court victories including beforewthe D.C. Court of Appeals. With this proposed we create a new platform where all parties can move forwarf by licensing our patented innovations for futuree use in their products rather than engaging in costly litigation.” Under the proposed resolution, Rambuas will offer licenses with maximum royalthy rates for five-year worldwide licensez of 1.5 percent for some of its memoryt types. Some licensees who ship less than 10 percent of theitr DRAM products will enjoy aroyaltyu holiday. In addition, Rambus will offer licensesd with maximum royalty ratesfor five-year worldwide licensezs of 1.
5 percent for some memory controllersz through April 2010, dropping to 1 percent thereafter, and royalty rates of 2.65 percent per unit for other memory controllers through April 2010, then droppinf to 2 percent.