UPDATE 3-Rambus says wins memory chip patent case

Wed Mar 26, 2008 10:37pm GMT
 
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(Rewrites first two paragraphs, moves up reference to royalties estimate)

SAN FRANCISCO, March 26 (Reuters) - Memory chip technology developer Rambus Inc (RMBS.O: Quote, Profile, Research) said on Wednesday it won a key case in a long-running patent lawsuit, sending its shares 39 percent higher.

The jury rejected claims by three large memory-chip makers, Hynix Semiconductor Inc (000660.KS: Quote, Profile, Research), Micron Technology Inc (MU.N: Quote, Profile, Research) and Nanya Technology, that Rambus deliberately misled the memory chip industry in the 1990s when new standards were being hammered out.

They claim Rambus failed to disclose it was seeking patents on the technology that was then being worked into standards for chip production.

Analysts have estimated Rambus could eventually collect royalties of anywhere from hundreds of millions to billions of dollars over the next decade. It is not yet clear when Rambus might receive any back royalties.

The U.S. jury held there was no anti-competitive behavior by Rambus in its activities with a memory chip industry standards body and that the company did not commit fraud in its attempt to protect memory chip patents, Rambus General Counsel Tom Lavelle said by telephone.

"This was an important one for us," Lavelle said, adding that it marks a first step toward Los Altos, California-based Rambus collecting royalties from other memory chip makers.

Micron said it planned to appeal the verdict.

Rambus shares jumped $7.25, or 39 percent, to close at $25.86 in Nasdaq trading. The company's options were also actively traded throughout the day as investors speculated that Rambus would prevail.  Continued...

 
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