Wednesday, February 16, 2005

Is Jeff Mailloux Going To Jail?

Dance Card: Rambus vs. Micron, Hynix/Siemens and Infineon

Dance Hall: California Superior Court, County of San Francisco

What is the problem?
Rambus believes that Micron, Hynix/Siemens and Infineon (“Three Amigos”) illegally colluded as a group "to eliminate competition and stifle innovation in the market for computer memory technology and computer memory chips".

Please, what does Rambus believe the Three Amigos did?
They reduced the desirability and availability of RDRAM by inflating price and production projections back in the late 90’s. They also agreed to benchmark the price-cost-availability of alternate memory. After killing RDRAM, the Three Amigos in concert sought to raise the price of non-RDRAM memory.

Why would the Three Amigos want to kill RDRAM?
They objected to Intel deciding what type of memory the Three Amigos would be making. They also feared that they would simply become foundries for Rintel (Rambus + Intel) with the profits going to Rintel.

What does Rambus want?
Actual damages (maybe more than $1B), treble damages (multiply actual damages by three) and punitive damages (the sky is the limit). Also, attorney fees and costs.

Who is Jeff Mailloux and why would he be going to jail?
Paragraph 65 of the complaint describes Jeff Mailloux, as a senior Micron executive who wrote an email to Farhad Tabrizi, his counterpart at Hyundai (now Hynix) about a conversation he had with Anthony Cataldo who authored an article in EE Times . Mailloux wanted Hyundai to have a “heads up” and to encourage Tabrizi to call Cataldo and “give him Hyundai’s view”. Mailloux concluded his e-mail stating “Anyhow, please visit me if I end up in jail, but felt it was important and timely enough to get our message out there . . .”

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