Rambus wins again as Supreme Court denies Samsung's appeal

By Scott M. Fulton, III | Published October 7, 2008, 12:01 PM

In an effort to avoid embarrassment, Rambus sought to end a high-profile patent infringement squabble with competitor Samsung. A district court judge ruled Samsung couldn't let it go, but today the highest court says it must.

The US Supreme Court refused yesterday to hear memory maker Samsung's appeal in a case involving competitor Rambus -- an appeal which would have had wider ramifications on the market at large had it been heard.

Patent infringement cases can become weird just by design, but they can get weirder when there are several of them that share disputes over the same technology. Since 2005, Rambus has been trying to put one such case to rest, conceding defeat on this count and even offering to pay attorneys' fees for plaintiff Samsung.

But Rambus had a higher purpose in mind: A Virginia district court judge was likely to find against Rambus in a case that would have extremely embarrassing ramifications for the memory design innovator and manufacturer. Samsung claimed that Rambus managed a malicious campaign of litigation that involved evidence control, allegedly crossing into the territory of illegality -- what the law calls spoliation of evidence.

"At issue is some of the most remarkable litigation misconduct to have become the subject of litigation in recent memory," reads Samsung's petition of certiorari to the Supreme Court. "The district court found that respondent [Rambus], in planning an extensive litigation campaign against leading semiconductor manufacturers, including petitioner [Samsung], developed a 'document retention program [as] an integral part of its litigation strategy' that would 'target for destruction documents that are discoverable in litigation.' Respondent sought to get, in its words, 'battle ready' for litigation against the semiconductor industry by shredding millions of pages of documents, holding 'shredding part[ies],' and destroying contract and patent prosecution files directly relevant to the patent litigation respondent pursued."

Rambus was willing to put this case behind it, and in so doing, offered to pay Samsung's attorneys' fees. What that would have done, of course, is precluded District Court Judge Robert E. Payne from rendering a decision; and that decision would have had the effect of collateral estoppel with respect to the other IP suits it was managing, including a major one with Hynix Semiconductor. In other words, if Judge Payne found Samsung's claim to be accurate, no other court would have to prove its accuracy -- the fact could be used elsewhere, including by Hynix, against Rambus.

What happened instead was that Judge Payne ruled that his court retained jurisdiction in the matter of attorneys' fees. That appeared to have the effect of keeping the case open, so that Payne could then render a decision against Rambus -- a decision that would impact Rambus' other pending cases -- even if all Samsung won was attorneys' fees.

But the Federal Circuit Court of Appeals last April ruled in favor of Rambus, on the theory that when Rambus offered to pay Samsung all costs and effectively concede, Judge Payne's decision in that case was rendered moot.

"After Rambus offered the entire amount of attorney fees in dispute, the case became moot," wrote the three-judge panel last April. "The district court had no case or controversy to continue to consider. Thus, the trial court lacked subject matter jurisdiction to perpetuate an attorney fees dispute that was complete...Accordingly, the district court in this case lacked jurisdiction to issue any further opinions in conjunction with an attorney fees dispute that has ceased to exist. Because the district court's writing is an impermissible advisory opinion, this court vacates that advisory opinion as issued without jurisdiction."

In its response to Samsung's petition to the Supreme Court, Rambus defended its legal tactics, saying, "This Court has noted the obvious fact that document destruction is itself routine and legitimate...Only in certain circumstances is document destruction improper. As to Rambus, two of the three judges that have held trials on and independently rendered decisions on the charge of 'spoliation' have rejected it."

But that may not have even played a role here; instead, the fact of Rambus' complete concession in the Samsung matter should render any judgment about Rambus' conduct in that matter moot. In denying Samsung's petition, the Supreme Court effectively upheld the Federal Circuit's findings.

A very short statement from Rambus this morning reads, "With today's Supreme Court order, all appeals have been exhausted and the matter is now closed."

Comments

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Your man Payne wrote -
"The clear and convincing evidence shows that Rambus knew, or should have known, that its patent-infringement suit was baseless, unjustified and frivolous - one which reasonably intelligent people should have known would have no chance of success"

On appeal, the Court of Appeals for the Dederal District countered - "In sum, the district court erred in its construction of each of the disputed terms. In light of the revised claim construction, this court vacates the grant of JMOL of noninfringement and remands for the district court to reconsider infringement."
"In sum, substantial evidence does not support the jury's verdict that Rambus breached its duties under the EIA/JEDEC policy. Infineon did not show the first element of a Virginia fraud action and therefore did not prove fraud associated with the SDRAM standard. No reasonable jury could find otherwise. The district court erred in denying JMOL of no fraud on the SDRAM verdict. Because of these holdings, the new trial and injunction issues are moot."

Add a little substance to your article.

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Headlines -

SAMSUNG AGREES TO PLEAD GUILTY AND TO PAY $300 MILLION CRIMINAL
FINE FOR ROLE IN PRICE FIXING CONSPIRACY

Korean Company Pays Second Largest Criminal Antitrust Fine in U.S. History

http://www.usdoj.gov/atr...eleases/2005/212002.htm

INFINEON TECHNOLOGIES AG AGREES TO PLEAD GUILTY
TO PARTICIPATING IN DRAM PRICE-FIXING CONSPIRACY

Also Agrees To Pay $160 Million Fine - Third Largest In Antitrust History

http://www.usdoj.gov/opa...September/04_at_621.htm

Micron plea deal -

http://www.voluntarytrad...Amnesty%20Agreement.pdf

Surprisingly, you cannot even find the plea deal on the DOJ website. That shows their influence in perverting justice.

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Call Judge Payne and ask him what happened to the Infineon hard drive that was entrusted to him in the 11th hour.

It just disappeared.

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The issues that the district court judge ruled on weren't even fully heard in his court. He based his judgment on a non-final judgment that he hurriedly put together in the Infineon case when he heard that a judge in California was ready to try the same facts . That itself proves that (Judge) Payne had an unhealthy interest in the outcome of the case.

So basically you had a final judgment against Rambus without a trial and zero live witnesses, in the Virginia federal district court. All the traits of a Kangaroo Kourt.

Meanwhile in California, Judge Whyte after a full hearing involving numerous live witnesses ruled completely for Rambus.

Samsung along with the other DRAM price fixing cartel members (Micron [Ring Leader], Hynix and Nanya] have pled guilty to antitrust price-fixing charges by the Department of Justice and have paid record fines.

Any "journalist" has the responsibility to dig in a little deeper rather than put out the version that the cartel hands over to him.

And any moron writing on a message board should have figure out that the IP that is used in RDRAM is essential for SDRAM, DDR and DDR2. Infineon settled with Rambus and paid $50-$150M to Rambus even after Payne's travesty of a non-final judgment. Samsung was a signed licensee until they decided that they did not want to pay a penny more than Infineon and there was a corrupt judge in Virginia who might help them avoid paying.

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The patent system is getting ridiculous if a company (Rambus) can patent a technology they didn't even invent (SDRAM). The only memory technology that is a Rambus original is RDRAM.

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