FTC Compels Rambus to License Patented Technology and Limits Royalty Rates

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Following its decision last summer that Rambus had violated the antitrust laws by deceiving an industry-wide standard-setting organization, the Federal Trade Commission (FTC) issued its remedial order yesterday.[1] The Commission’s long-awaited order is significant because it (1)

places specific limits on Rambus’ licensing and patent enforcement activities and (2) sets forth a framework that U.S. courts can follow when fashioning a remedy in future antitrust cases that involve deceptive conduct before standard-setting organizations. Specifically, the FTC’s order (1) compels Rambus to license its patented technology on certain specified terms; (2) places limits on the maximum royalty rates that Rambus can collect for use of its

patents; and (3) imposes other significant conduct remedies that limit Rambus’ ability to engage in future deceptive conduct relating to standard-setting organizations. The Commission did not require Rambus to surrender past royalties; nor did it limit Rambus’ royalties on DDR2 SDRAM technology. Rambus has said it will appeal the decision.

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Published In: Antitrust & Trade Regulation Updates, Intellectual Property Updates, Science, Computers & Technology Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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