Rambus Inc, a designer of high-speed memory chips, won a ruling from a US Federal Trade Commission judge that may help it reap as much as US$3 billion a year from semiconductor makers.
An administrative law judge rejected government allegations that Rambus violated antitrust laws by attending meetings to set industry standards for memory chips as it pursued patents for those chips. The judge said the FTC "failed to sustain its burden" of proving Rambus committed fraud and dismissed the case.
Judge Stephen McGuire's decision, which will be reviewed by FTC commissioners in Washington, bolsters Rambus's efforts to collect patent royalties from semiconductor makers, including Infineon Technologies AG. McGuire issued a one-sentence order and will release his opinion to the public on Monday.
"This is a shot in the arm for Rambus," said Steve Allen, an analyst at Sierra Tech Research. "This means that, no matter which way the memory market goes, Rambus will end up on top."
About 90 percent of the 4 billion chips sold each year comply with the industry standards, with a value of between US$13 billion and US$25 billion, the FTC has said. Rambus, if allowed to pursue efforts to collect patent royalties from the chipmaking industry, might receive as much as US$3 billion a year, the FTC said.
Rambus shares rose US$0.31, or 1.2 percent, to close at US$25.84 in NASDAQ Stock Market composite trading. After hours, the shares rose as high as US$29 before trading was halted minutes before the judge's order was released. The shares have more than doubled since January last year.
David Parker, a spokesman for Micron Technology Inc, which is fighting Rambus over its patents, said in a statement that McGuire "failed to understand key points of fact and law" in the case. He said Micron is "hopeful" the full five-member Federal Trade Commission will overturn the judge.
Rambus, which licenses its technology to chipmakers such as Intel and Samsung Electronics Co, sued Infineon, Micron and Hynix Semiconductor Inc after they refused to sign licensing agreements.
Rambus doesn't make or sell its own chips. Instead, it collects patent royalties from semiconductor makers such as Intel that use its designs. The company specializes in chips designed to speed up computer programs for databases, games and digital photography.
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