Feeds

Rambus' ‘very high’ DDR royalty revealed

Comes out in damages calculations

  • alert
  • submit to reddit

Rambus vs Infineon Rambus has been milking DDR SDRAM vendors to the tune of 3.5 per cent of sales, it has emerged by way of the memory technology developers' legal action against Infineon.

The figure was revealed by University of California at Berkeley professor of business for the University of California David Teece. He told the court yesterday that if Infineon had agreed to Rambus' terms it would have had to pay the memory developer $3 million for the sales in made in the US for the seven months to 10 October 2000 alone.

You can see why Infineon refused to license Rambus' DDR SDRAM patents - a decision that sparked the case against it. True, 3.5 per cent may not seem much, but the sum Rambus as its royalty, long a closely guarded secret, turns out to be significantly higher than anyone in the biz had estimated.

It's also nearly five times the 0.75 per cent royalty Rambus charges for the right to use its single data-rate SDRAM intellectual property. But then SDR SDRAM doesn't compete directly with Rambus' own RDRAM technology.

Analysts had put the figure at between 2 and 2.5 per cent, EBN reports.

Details of the royalty emerged through Rambus' claim that Infineon's refusal to license its patents is giving the Siemens spin-off at an unfair commercial advantage over those companies who have.

That's their problem, argues Infineon - if Samsung, Elpida, NEC, Toshiba and the other Rambus IP licensees don't like it, they can refuse to pay too. Micron and Hynix are also refusing to pay up, and are looking forward to an Infineon victory to boost their own defences against Rambus' lawyers.

"The 3.5 per cent figure is very high - especially when three major competitors aren't paying any royalties," said Needham & Co. analyst Dan Scovel, cited by EBN.

If Infineon loses its case, it stands to pay an even higher rate than that. Last year, in a presentation to analysts, Rambus said "those companies that decide to litigate will pay higher royalty rates". ®

Related Stories

Judge dismisses 'dozens' of Rambus allegations
Rambus threatens non-compliant Dramurai

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.