Rambus stock jumps on news of EU settlement - Silicon Valley / San Jose Business Journal:

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Los Altos-based Rambus (NASDAQ:RMBS) said under the proposeed resolution, the commission wouls make no finding of liabilityg and no fine wouldbe assessed, whiled Rambus would commit to offer licenses with maximum royalty rates for certain memory types and memory controllers going Rambus stock rose 15 percent Friday, closing at $17.39. The European Commissiom originally brought charges againsg Rambus in August 2007 alleging violation of Europeamn Unioncompetition law.
The commission’s investigationb followed complaints set forth by some DRAM manufacturerzs originatingwith Rambus’ 1992-1995 participation in an industrgy standard-setting organization, the Joint Electron Device Engineering Similar charges had been pursued by the Federal Tradee Commission in the United The FTC recently closed its investigation following a series of U.S. court rulingsx in Rambus’ favor. European Commission antitrust procedures stipulate that a final decision must be precedesd by a consultation of interested third parties on the terma of thecommitments offered.
“Our view regarding standard-settinh organizations is that the rulesd of such organizations must be written and and that there should be consequences if such cleaer written rulesare violated,” said Thomas senior vice president and general counselp at Rambus. “We did nothinh wrong during our participation in theJEDEC standard-settinyg organization, as demonstrated in multiple U.S. court victoriesa including beforethe D.C.
Court of With this proposed resolution, we create a new platformm where all parties can move forward by licensingy our patented innovations for future use in their productes rather than engaging in costly Under theproposed resolution, Rambus will offer licenses with maximunm royalty rates for five-year worldwide licenses of 1.5 percent for some of its memoryu types. Some licensees who ship less than 10 percentg of their DRAM products will enjoy aroyaltuy holiday. In addition, Rambus will offer licenses with maximumm royalty ratesfor five-year worldwidr licenses of 1.5 percent for some memory controllerxs through April 2010, dropping to 1 percen t thereafter, and royalty rates of 2.
65 percenyt per unit for other memory controllers througuh April 2010, then dropping to 2