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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 94.69-0.8%3:59 PM EST

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To: Don Green who wrote (45796)6/23/2000 1:09:00 AM
From: Don Green   of 93625
 


Hitachi, Rambus Agree To Settle U.S. Patent Suit
Friday, June 23, 2000
PALO ALTO, Calif. (Nikkei)--Rambus Inc. announced here Thursday it had settled its lawsuit against Hitachi Ltd. (6501) for patent infringement.

The case involved patents affecting high-speed DRAMs claimed by the U.S. firm, which develops and licenses semiconductor technologies. On top of a cash settlement, Hitachi has agreed to pay royalties for technology related to widely used synchronous dynamic random-access memory (S-DRAM) chips.

Many industry players had expected Hitachi to slug it out with Rambus, as the U.S. firm's claims were hotly disputed within the industry. One analyst described the settlement as "an unexpected development."

Rambus filed a suit against Hitachi in January with the Federal District Court in Delaware, then in March with the International Trade Commission when it also named Sega Enterprises Ltd. (7964). Sega uses Hitachi microprocessors in its Dreamcast home video-game consoles sold in the U.S.

Hitachi countersued in the federal district court and a major legal battle was anticipated.

DRAM makers doubted whether Rambus could effectively sell the rights to use the contentious technology but the settlement boosts the firm's patent claim, according to an industry analyst.

Rambus also inked a licensing deal with Toshiba Corp. (6502) in the middle of this month.

The big U.S. firm Micron Technology Inc. and South Korean manufacturers are now under pressure to pay royalties to use the technology.

(The Nihon Keizai Shimbun Friday evening edition)

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