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Jury finds Rambus committed fraud

Geoff Gasior Former Managing Editor Author expertise
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TR reader and avid Rambus trial follower Steven C. Den Beste sends word of a major ruling against Rambus. He writes:

The jury in the Infineon/Rambus trial has found for Infineon on two counts
of fraud
, and has awarded punitive damages. Because of Virginia law, damages
cap at $350,000. The jury did not find RICO violation.

The money is negligible, of course. However, because of this fraud finding,
Infineon now can (and will) make a motion next week for the judge to grant
“equitable estoppell”, which in essence means that Rambus will be enjoined
against attempting to collect royalties on SDRAM or DDR-SDRAM in the US. It
amounts to a partial nullification of the patents, which would henceforth
only apply to RDRAM.

Such a ruling, if granted by the judge, would apply not just to Infineon but
to every chip maker on all chips sold in the US. This would include not just
RAM chips, but also companies like nVidia (which Rambus has been trying to
hit). This would deprive Rambus of enormous amounts of income, and might
conceivably lay them open for suits from existing licensees to recover
royalties already paid. In other words, legal expenses are going to rise
steeply and income is going to fall.

This would also have no direct effect on royalties for sales outside the US
covered by patents in other nations, but should be extremely influential in
courts in other countries, where lawsuits are now pending.

This could be the beginning of the end for Rambus. But do we get to see them go to jail?

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Geoff Gasior Former Managing Editor

Geoff Gasior Former Managing Editor

Geoff Gasior, a seasoned tech marketing expert with over 20 years of experience, specializes in crafting engaging narratives that connect people with technology. At Tech Report, he excelled in editorial management, covering all aspects of computer hardware and software and much more.

Gasior's deep expertise in this field allows him to effectively communicate complex concepts to a wide range of audiences, making technology accessible and engaging for everyone

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