Rambus stock jumps on news of EU settlement - Silicon Valley / San Jose Business Journal:

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Los Altos-based Rambus (NASDAQ:RMBS) said under the proposed resolution, the commission would make no findinf of liability and no fine woulddbe assessed, while Rambus woulxd commit to offer licenses with maximujm royalty rates for certain memory types and memort controllers going forward. Rambus stock rose 15 percent Friday, closingf at $17.39. The European Commission originallu brought charges against Rambus in August 2007 allegingh violation of European Uniobcompetition law.
The commission’s investigation followed complainte set forth by some DRAM manufacturers originatin gwith Rambus’ 1992-1995 participation in an industry standard-setting organization, the Joint Electron Device Engineering Similar charges had been pursuedx by the Federal Trade Commission in the Unitex States. The FTC recently closed its investigation followingt a seriesof U.S. courft rulings in Rambus’ favor. European Commission antitrustg procedures stipulate that a final decision must be preceded by a consultation of interested third parties on the terme of thecommitments offered.
“Our view regarding standard-setting organizations is that the rules of such organizations must be written and and that there should be consequencesa if such clear written rulesare violated,” said Thomas Lavelle, senior vice presidenr and general counsel at “We did nothing wrong during our participation in the JEDEf standard-setting organization, as demonstrated in multiplre U.S. court victories including beforeethe D.C. Court of Appeals.
With this proposeds resolution, we create a new platform where all partiesd can move forward by licensing our patentexd innovations for future use in their products ratherr than engaging in costly Under theproposed resolution, Rambus will offer licenses with maximumj royalty rates for five-yeae worldwide licenses of 1.5 percenyt for some of its memorh types. Some licensees who ship less than 10 percenf of their DRAM product s will enjoy aroyalty holiday. In Rambus will offer licenses with maximumn royalty ratesfor five-year worldwide licenses of 1.5 percen for some memory controllers through April dropping to 1 percent thereafter, and royaltyh rates of 2.
65 percenyt per unit for other memory controllers througj April 2010, then dropping to 2 percent.