FTC Rebukes Rambus for Acquiring Standards-Based Patents

In a recent ruling, the US Federal Trade Commission (FTC) has set a higher standard for behaviour among participants in industry standard-setting. Rambus Inc (Rambus), a memory chip manufacturer, had participated in an industry standards-setting organization, in the course of which it had access to shared information regarding the standards under consideration for high speed random access memory chips. Using this information, Rambus applied for patents covering the standards set in the sessions, thereby preventing others from using the technology without licensing it from Rambus. In its recent ruling, the FTC has condemned such behaviour as a violation of US anti-trust laws. The FTC found that Rambus engaged in exclusionary and deceptive conduct that significantly contributed to its acquisition of monopoly power in four related markets. The FTC is now taking submissions on an appropriate remedy, which may include injunctive relief and the imposition of "reasonable" royalty rates. For the full text of the FTC Decision, see: http://www.ftc.gov/os/adjpro/d9302/060802commissionopinion.pdf For news coverage, including commentary by several industry observers, visit: http://www.law.com/jsp/article.jsp?id=1161606920964 Summary by: James G. Kosa