Rambus continues its march into oblivion

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Judge Rules Against Rambus

By THE ASSOCIATED PRESS

Published: March 1, 2005

Filed at 10:47 p.m. ET

SAN JOSE, Calif. (AP) -- Rambus Inc.'s patent infringement claims
against memory chip maker Infineon Technologies AG were dismissed
Tuesday after a federal judge found Rambus destroyed documents in
anticipation of the case.

Los Altos, Calif.-based Rambus, which designed a chip interface to speed
computer memory, claimed Infineon used its patented technology for its
DDR DRAM memory chips without a license. Rambus has made similar claims
against other chip makers as well.

Infineon denied the allegations and, in a motion, claimed Rambus
destroyed key documents related to the pending litigation. On Tuesday,
U.S. District Judge Robert Payne in Richmond, Va., agreed with Infineon.

Memory chips are used in a variety of electronic devices, ranging from
video game consoles to personal computers. Rambus stood to gain millions
of dollars if it had prevailed.

``We are gratified that the Court determined that Rambus's litigation
misconduct should not be rewarded,'' Infineon said in a statement.

Rambus shares plummeted more than 10.6 percent, or $1.82, to $15.34 in
after-hours trading. They closed at $17.16, down 41 cents, in regular
Tuesday trading on the Nasdaq Stock Market prior to Payne's decision.

John Danforth, Rambus' general counsel, said the company feels it has
``a strong case on appeal.''

``We look forward to eventually presenting our patent claims on the
merits so our contributions to the industry and the value of our
inventions are clear,'' he said in a statement.

Payne's decision is the latest in a battle that began in 2000, when
Rambus sued Infineon over royalty payments. Infineon refused to pay,
alleging that Rambus participated in an industry standard setting group
from 1991 to 1995 but failed to disclose that it already had patents on
some technical specifications.

A Virginia jury decided in 2001 that Rambus should pay Infineon about
$10 million in damages and litigation costs. A federal appeals court
reversed the trial court ruling in early 2003, and Infineon demanded a
retrial.

Rambus, meanwhile, is continuing to assert larger patent claims against
Hynix Semiconductor, Infineon, Inotera Memories and Nanya Technology
Corp. It also has a case pending against Micron Technologies.

Copyright 2005 The Associated Press