FTC Grants a Partial Stay to Rambus

Posted by Andy_Updegrove on Mar 20, 2007 5:03 PM EDT
ConsortiumInfo.org Standards Blog; By Andy Updegrove
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The world of open source has its SCO suit, and the world of open standards has its Rambus mess. Rambus is a memory technology developer that the Federal Trade Commission has ruled created an illegal monopoly by "gaming" the standard setting process. Last Friday, Rambus won a tactical victory that will allow it to continue to charge its current royalties, so long as the part the FTC deems to be excessive goes into an escrow account, until an appeal by Rambus' is won or lost.

the new order stays in part an order issued on February 2, 2007, in which the FTC prohibited Rambus from charging royalties to implement two standards in excess of those the Commissioners determined Rambus could have charged, absent its abuse of the standards process that created those standards. Under the new order, Rambus will be permitted to continue to charge the rates it demanded prior to the FTC's intervention, but only if it places the excess amounts in a court-approved escrow. The Commissioners' latest Order will be welcomed by Rambus' stockholders, but will not be as happy news for Rambus licensees, who will see millions of dollars go into escrow for an indefinite period of time.

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