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 proposec resolution, the commission would make no finding of liability and no fine woulfbe assessed, while Rambusz would commit to offer licensed with maximum royalty rates for certain memory types and memory controllers going forward. Rambusa stock was up as much as 18 percent in Friday morning, trading as high as $17.81. The Europeajn Commission originally brought charges against Rambus in Augusy 2007 alleging violation of European Unioncompetitionm law.
The commission’s investigation followed complaints set forth by some DRAM manufactureras originatingwith Rambus’ 1992-1995 participationn in an industry standard-setting organization, the Joint Electronm Device Engineering Council. Similar charges had been pursues by the Federal Trade Commission in theUnited States. The FTC recentlyu closed its investigation following a seriesof U.S. courtf rulings in Rambus’ favor. European Commissionj antitrust procedures stipulate that a final decision must be preceded by a consultatiobn of interested third parties on the term s of thecommitments offered.
“Our view regarding standard-setting organizationds is that the rules of such organizationsz must be writtenand clear, and that therew should be consequences if such clear written rulesw are violated,” said Thomas senior vice president and general counsel at “We did nothing wrong during our participation in the JEDExC standard-setting organization, as demonstrated in multipl U.S. court victories including beforethe D.C. Court of With this proposed we create a new platformj where all parties can move forwardc by licensing our patented innovations for future use in theid products rather than engaging incostly litigation.
” Under the proposed resolution, Rambuds will offer licenses with maximum royalty rates for five-year worldwide licenses of 1.5 percent for some of its memorh types. Some licensees who ship less than 10 percengt of their DRAM products will enjot aroyalty holiday. In Rambus will offer licenses with maximum royaltyt ratesfor five-year worldwide licenses of 1.5 percent for some memoru controllers through April 2010, dropping to 1 percent thereafter, and royalty ratess of 2.
65 percent per unit for other memor controllers through April 2010, then dropping to 2