Stardate 20010602.0820 (On Screen): Rambus has certain patents which cover a kind of memory known as RDRAM, but they've been trying to apply those patents to the far more popular SDRAM and the upcoming DDR-SDRAM. Many of the manufacturers of SDRAM have knuckled under and have been paying royalties, but three large makers refused to do so and now Rambus is locked in litigation with them. One of them, Infineon, has now prevailed twice in court against Rambus. In the largest and most high profile case so far which is being tried in Virginia and which covers Infineon's SDRAM sales in the US, the judge dismissed all of the Rambus infringement claims. However, Infineon's countersuit claiming fraud went to the jury, who found that Rambus had indeed committed fraud. This opens Infineon to ask for a ruling of
equitable estoppel, which amounts to a legal nullification of the patents.
Rambus has, in the course of just a couple years, managed to become nearly the most hated company in the computer business. So imagine the shock amongs those of us who want Rambus to crash and burn to learn that Infineon has decided not to ask for equitable estoppel after all. My first reaction upon learning this was "Infineon ran the race, and they're stopping a hundred meters short of the finish line. Are they crazy?" Then I started thinking more about it and realized that they're crazy like a fox. First, if they don't ask for equitable estoppel now they don't lose their chance to ask for it later. Second, they're already out from under WRT Rambus because the judge dismissed all the claims of patent infringement. If Infineon were to go ahead, it would cost them even more legal expenses and the ruling of equitable estoppel would mostly benefit other companies, without costing them anything. Why should Infineon pay the extra legal expenses to save Micron from paying royalties? If I was the management at Infineon, what I would want is for my own company to be the only one in the industry not having to pay royalties. That would give my product a price advantage. I would also want Rambus to go out of business, and the best way for that to happen is for them to drown in legal bills, defending numerous suits from other RAM companies. Finally, I would want Rambus to not try to appeal the decision I just gained in Virginia. This seems to indeed be exactly what they're going to have. Rambus has stated that it will appeal the dismissal, but if they do then Infineon can move for equitable estoppel and win anyway. If Rambus agrees not to appeal, then their patents may retain force over everyone else -- but if Rambus appeals and Infineon gets equitable estoppel then Rambus's patents are nullified for everyone. I think we're going to hear that Rambus will decide not to appeal after all.
Machiavelli would be proud. (discuss)
