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Out-Law News 1 min. read

Rambus files antitrust suit against four rivals


Chip interface designer Rambus announced yesterday that it had filed an antitrust suit against four rivals, alleging that the companies engaged in a concerted and unlawful effort to eliminate competition and stifle innovation in the memory market.

The suit accuses Hynix Semiconductor, Infineon Technologies, Micron Technology and Siemens AG of conspiracy to restrict output and fix prices, conspiracy to create a monopoly, unfair competition and intentional interference with prospective economic advantage.

"From substantial written evidence already in the public record, we believe that these memory manufacturers colluded illegally, thereby limiting consumer choice and depriving our RDRAM products of the opportunity to compete fairly in the marketplace," said John Danforth, senior vice president and general counsel for Rambus.

"While we cannot change the past, we have a duty to our stockholders to respond appropriately to this evidence, which we are doing today," he added.

No stranger to litigation, Rambus designs, develops and licenses high-bandwidth chip-connection technologies that enable semiconductor memory devices to keep pace with faster generations of processors and controllers. The company owns more than 100 patents, which it has licensed to around 30 chipmakers.

Rambus is already suing Infineon, Hynix (previously known as Hyundai Electronics), and Micron Technology for refusing to pay royalties for its technology. The trial in the Infineon case looks likely to take place in the autumn.

Rambus has also had dealings with antitrust investigations in the past. A Federal Trade Commission case against Rambus was dismissed earlier this year, following a two-year investigation and a three-month long hearing. The FTC had alleged that the chip company deceived the computer chip industry into setting a standard for memory chips that included its own, already patented, technology.

According to a report on internetnews.com the FTC has now filed an appeal against that ruling.

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