The case was due to go to trial next Monday in a Virginia district court.
Rambus, which designs, develops and licenses high-bandwidth chip-connection technologies, sued Infineon, Europe's third largest chip manufacturer, in 2000. Rambus claimed that Infineon uses technologies covered by Rambus patents without a licence.
The dispute involved the SDRM (synchronous dynamic random access memory) and DDR (double data rate) memory chips. These chips allow fast transfer of data, are more efficient than the traditional DRAM chips and are replacing them in most new PCs. Rambus owns patents that it claims cover these technologies.
Separate actions were also raised against Hyundai Electronics (now Hynix) and Micron Technology.
In the years since the filing, the case has grown ever more complex, with counterclaims, accusations of fraud and antitrust investigations all playing their part. Matters were due to come to a head next Monday when the patent trial was due to begin.
But in December last year, Infineon filed a motion to dismiss the case, alleging litigation misconduct on the part of Rambus, including the wilful destruction of evidence.
Yesterday, US District Court Judge Robert E Payne upheld Infineon's "unclean hands" argument and dismissed the patent action. One claim remains in the case, a claim by Infineon against Rambus for the purported violation of the California Business and Profession Code.
Rambus senior vice president and general counsel John Danforth said that the company felt it would have 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.
According to Reuters, Infineon spokesman Christoph Liedtke said:
"We are gratified that the court determined that Rambus' litigation misconduct should not be rewarded".