|
Rambus patent case dismissed
|
 |
May 4, 2001: 4:13 p.m. ET
Memory chip technology specialists shares plummet on ruling news
|
NEW YORK (CNNfn) - Shares of computer memory technology specialist Rambus plunged in afternoon trade Friday after a federal judge dismissed all the patent infringement claims it made against semiconductor maker Infineon Technology.
Rambus (RMBS: Research, Estimates) shares were halted shortly after the ruling, which was first reported by the electronics industry trade paper Electronic Buyers' News on its Web site. They ended the day 20 percent lower at $14.60.
Rambus makes money by licensing a memory-chip design -- called Rambus Dynamic Random Access Memory, or RDRAM -- which speeds up computer memory systems by accelerating the exchange of data between the computer's memory banks and their surrounding support-logic chips.
It sued Infineon, claiming the German chipmaker infringed on Rambus patents in the design of some of its computer memory products. Rambus' stock has been extremely volatile as the case has wended its way through the legal process.
On Thursday, Rambus shares escaped a broader sell-off in the tech sector after U.S. District Court Judge Robert Payne, who has been hearing the case in Richmond, Va., forced Rambus to disclose the royalty rates its licensees have agreed to pay. The stock moved higher when it was revealed that several of Rambus' customers were paying a far greater percentage for the use of its designs than most industry observers had thought.
Earlier this week, the stock fell sharply on news that Payne had tossed out all but three of the more than 50 specific claims Rambus had filed against Infineon.
In a prepared statement, Rambus CEO Geoff Tate vowed to appeal Friday's ruling.
"If today's decision is allowed to stand, all companies that innovate risk having their intellectual property rights unjustly expropriated," Tate said. "Rambus will continue to fight to protect our intellectual property. It is our right, and indeed our obligation to our shareholders, to take all appropriate measures to protect our patented innovations."
In addition to the patent claims Rambus has made against Infineon in Virginia, the company said there are a dozen U.S. and European patents involved in other infringement cases pending against Infineon as well as Hyundai and Micron Technology (MU: Research, Estimates).
Rambus said it intends to pursue all these cases vigorously, including a trial against Infineon in Germany, which is currently scheduled to begin on May 18.
Shares of Infineon (IFX: Research, Estimates) finished Friday's session $2.25 higher at $42.50, a 5.6 percent gain. 
|
|
|
|
|
 |
|
