Wednesday, April 26, 2006

Rambus Inc. verdict in perspective - Empiricum Guest Editorial

Last Monday's resounding and compelling jury verdict in favor of Rambus, Inc., over Hynix is a landmark in the DRAM industry as it puts an end to intellectual property thievery and vindicates lawful property ownership.

Now Rambus, Inc., can see the light at the end of the tunnel in a long struggle to establish the legality and enforceability of its patents despite a coordinated effort by a cartel.

On a personal note, last Monday's victory keeps the "batting average" of this writer at a whopping .9999 in his analyses and predictions on Rambus legal issues in the course of that struggle since August, 2000. It should be noted parenthetically that, regrettably, the .0001 refers to his early article about "The Boys of Mountain View" (the initial Rambus legal team) who lost in VA1 due to an "unknown factor" at that time --- Judge Robert Payne! This needs no further explanation.

Prospectively, the legal effect of the Hynix verdict is immeasurable on the remaining cases. Rambus' lead counsel Gregory Stone should have by now filed certified copies of the Hynix verdict in Delaware, San Francisco, the FTC and yes, also in Virginia.

Reportedly, Dan Furniss, Hynix's lead counsel, is quoted as saying that he will continue to fight the verdict during the third phase in San Jose with an "anti-competitive" argument. This argument is laughable, if not ridiculous. That argument is more of an economic nature than legal. Besides, FTC Chief Judge Stephen McGuire has already ruled on the matter, albeit his ID is on appeal. Furniss needs to be reminded that a patent that is found by a jury and the PTO to be legal IS monopolistic in nature and excludes the enjoyment and use by others UNLESS THEY PAY through RAND licensing. Once again, Furniss is showing his desperation and last grasp on his remaining straws after exhausting and, sometimes repeating, all conceivable defenses, equitable and legal, including JEDEC, fraud, spoliation, and so forth.

As a tactical matter, Rambus, Inc., should now send a memorandum to Hynix that if they do not come to the settlement table UNDER THE TERMS OF THE VERDICT, the verdict will be enforced to the letter upon affirmation by Judge Ronald Whyte with the accompanying threat that they will be enjoined from further manufacture and use of Rambus patents AND GRANT A SWEETHEART DEAL TO SAMSUNG which will effectively put Hynix out of the DRAM business here in the US and also in South Korea! That will be a good food for thought for Hynix and Furniss.

As regards the post verdict movement of the Rambus stock, this writer is of the opinion that it is attributable mainly to the "overhead theory" which has been previously discussed repeatedly here on Treowth and in the aol rmbs message board by this writer. The secondary reason is the squawk of those who are not very knowledgeable on Rambus issues and those who bash for a certain agenda: greed!

Early this morning, a certain CNBC stock "analyst" named "HERB" during his squawk with Quintanilla said that the Rambus stock is just an example of "buy on the rumor, sell on the news." Did "HERB" state his disclaimer and disclosure and the reason for his comment? If not, that guy should be reported to the SEC and to NY AG Spitzer !!!

(Disclaimer and Disclosure: The foregoing is my personal opinion for discussion purposes only here on Treowth and is not intended as a legal or investment advice. It is highly recommended that the reader should conduct his own due diligence and extensive research on the complicated issues affecting Rambus. And... yes, I am a long term investor of Rambus, Inc., since early 2000.)


jester said...

Many thanks EMP !

Empiricum said...

You are welcome, Jester. As always, the pleasure is mine.

My next op-ed will deal with the illegal immigration issue with this thesis: The US Constitution promotes illegal immigration and needs to be amended.

(Of course the politicians and so-called pundits cannot see it that way.)

Please stay tuned.

Anonymous said...

Thanks Empiricum,

I missed your comments on AOL and I'm glad to have found your new forum.

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