FTC says Rambus unlawfully monopolized chip markets

08/03/06 - newratings.com

NEW YORK, August 3 (newratings.com) – The US Federal Trade Commission (FTC) ruled on Wednesday that memory chip developer Rambus Inc (RMBS) had monopolized the markets for memory chip technologies through its deceitful conduct.

The FTC said Rambus had failed to inform the computer industry that it had applied for patents on technologies for speeding up memory chips. These technologies had been chosen by the industry as a standard for a large number of products, ranging from personal computers to set-top boxes, and the standard setting group, JEDEC, had sought the relevant information from Rambus before taking a decision, the FTC added. The regulatory authorities aim to bar Rambus from enforcing any of its current licensing agreements and some of its patents. Meanwhile, Rambus officials said the company would appeal against the ruling.

In 2002, the FTC had charged Rambus with deliberately engaging in anticompetitive acts in order to deceive an industry organization that was developing a standard for computer memory. An administrative law judge within the FTC had dismissed the charges in 2004, concluding that the evidence did not support the allegations.