Rambus (RMBS) Reaches Tentative Settlement with EU to Resolve Pending Case

June 12, 2009 7:40 AM EDT

Rambus Inc. (NASDAQ: RMBS) today announced that it has reached a tentative settlement with the European Commission to resolve the pending case against the Company. Under the proposed resolution, the Commission would make no finding of liability relative to JEDEC-related charges, and no fine would be assessed against Rambus. In addition, Rambus would commit to offer licenses with maximum royalty rates for certain memory types and memory controllers on a forward-going basis. European Commission antitrust procedures stipulate that a final decision must be preceded by a consultation of interested third parties on the terms of the commitments offered; this consultation was initiated today.

Under the proposed resolution, Rambus will offer licenses with maximum royalty rates for five-year worldwide licenses of 1.5% for DDR2, DDR3, GDDR3 and GDDR4 SDRAM memory types. Licensees who ship less than 10% of their DRAM products in the older SDR and DDR DRAM types will enjoy a royalty holiday for those older types, subject to compliance with the terms of the license. In addition, Rambus will offer licenses with maximum royalty rates for five-year worldwide licenses of 1.5% per unit for SDR memory controllers through April 2010, dropping to 1.0% thereafter, and royalty rates of 2.65% per unit for DDR, DDR2, DDR3, GDDR3 and GDDR4 memory controllers through April 2010, then dropping to 2.0%. This commitment to license at the above rates will be valid for a period of five years from the adoption date of the Commitment decision. All royalty rates are applicable to future shipments only.

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