Rambus Wins Stay of FTC Patent Judgement

Rambus will be allowed to continue to collect royalties on its memory chip technologies thanks to a stay of an order that would have forced it to lower its rates, however the extra money will need to be placed in escrow while it appeals.

The Federal Trade Commission had ruled in February that Rambus could charge a maximum royalty rate of .5 percent for DDR SDRAM, and .25 percent for SDRAM for a period of three years after the order is issued. Following this period, the company will be barred from collecting royalties.

However, thanks to the stay granted by the FTC pending appeal, Rambus' royalty rates would stay as is. However, monies collected beyond that which the order requires will be placed in escrow. If the company wins, it will be allowed to keep the money: otherwise it must be returned to the licensees.

"The decision to grant a limited stay of our final order is a difficult one," the decision reads. "Undoubtedly, it will entail some harm to the public interest by allowing Rambus to continue to collect monopoly (fees) during the pendancy of its appeal."

Of course, Rambus sees it in a different light. ""The Commission's opinion confirms our ability to collect payments due for use of our technologies in the past and allows us to retain royalties already paid, removing significant uncertainty for the market," the company's senior vice president and general counsel Tom Lavelle said.

Rambus intends to appeal the full order, as well as the remedy proposed. The FTC however clarified its position, saying it will not force the company to refund past royalties, but instead limit it from the effective date of its order.

No date has been set for the appeal.