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Hynix to pay bond for infringing Rambus patents

Posted: 29 May 2009 ?? ?Print Version ?Bookmark and Share

Keywords:Hynix infringement? Rambus patent? SDRAM?

Rambus Inc. announced that the U.S. District Court for the Northern District of California has ordered Hynix Semiconductor to secure the judgment amount of approximately $397 million through a combination of a bond and a lien on a Hynix property in South Korea for infringing Rambus patents.

The bonded amount of $250 million is required to be posted within 45 days of the order. The lien will only serve as security if a new appraisal of the Hynix property shows a fair market value of at least double the amount of the judgment not secured by the bond. If the appraisal is inadequate, Rambus may ask the Court to substitute other security.

Final judgment in this matter was entered against Hynix on Mar. 10 in the amount of approximately $134M for infringement through Dec. 31, 2005 and approximately $215M for its infringement from Jan. 1, 2006 through Jan. 31, 2009. In addition, the Court awarded about $48M in pre-judgment interest to Rambus.

"We fully expect the judgment against Hynix to be upheld on appeal, and that we will be entitled to collect the entire amount of the judgment," said Thomas Lavelle, senior VP and general counsel at Rambus. "We appreciate the Court's thoughtful consideration in this case, however, we believe Hynix should have been required to post a bond for the entire amount of the judgment. If Hynix's proposed lien fails to show value of roughly $300 million, we will ask the Court for other security in order to protect Rambus' interests."

In addition, the Court ordered Hynix to pay compulsory license fees into escrow pending the outcome of the appeal Hynix filed in this matter. The Court ordered Hynix to pay Rambus royalties on net sales after Jan. 31, 2009 and before Apr. 18, 2010 of 1 percent for SDR SDRAM and 4.25 percent for DDR SDRAM memory devices. The latter rate applies to DDR, DDR2, DDR3, GDDR, gDDR2 and GDDR3 SDRAM devices, as well as DDR SGRAM devices. Damages and the compulsory license apply to U.S. infringements of the patent claims in suit.





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