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Nvidia Corp., a leading supplier of graphics and multimedia chips, said that it would not negotiate with Rambus over patent dispute even though an ITC judge preliminary found the company guilty of infringement of three Rambus’ patents.

“Rambus and Nvidia talked for eight years before they sued us. I don’t think it’s realistic to think that there’s going to be an agreement any time soon between the two companies,” said David Shannon, Nvidia’s general counsel, in an interview with BusinessWeek.

Last week it transpired that Judge Theodore Essex with the U.S. International Trade Commission found Nvidia guilty of infringing three patents of Rambus. The finding is subject to review by the six-member commission and, if upheld, could lead to a ban on imports of Nvidia chips and products on their base into the U.S. Nevertheless, Nvidia is sure that its business will not be stopped. Nvidia has numerous options to impede any ruling banning imports, if the commission sides with Rambus, Nvidia can appeal to a court that specializes in patent law.

“Our customers will never have their businesses interrupted. Our position is there will be no exclusion order,” said Mr. Shannon.

According to findings of ITC and USPTO, some patents of Rambus are not valid, which is why the chip designer is not going to pay royalties to the technology developer. The question is, however, whether Nvidia plans to pay royalties for the three patents

“We are not going to pay on patents that are not valid,” said Mr. Shannon.

In June 2008 Rambus accused Nvidia and its partners in infringement of seventeen patents, of which six are to expire in early 2010. The patents are believed to be related to memory controllers inside Nvidia’s chips. The companies are in the legal battle at the moment.

Tags: Nvidia, Rambus, Geforce, Nforce, Business

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Comments currently: 2
Discussion started: 01/30/10 12:47:15 AM
Latest comment: 01/31/10 01:42:55 AM
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I wonder if this is actually a decision based on precedent or JHH posturing? Lord knows they need to ditch that douche ASAP before he sinks the whole company.
0 0 [Posted by: siuol11  | Date: 01/30/10 12:47:16 AM]
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Some backround:
Xbitlabs summary of the Rambus v nVidia fight so far (Rambus filed 17 patent infringements against nVidia, 14 have been rejected, 3 charges upheld by the USITC)
http://www.xbitlabs.com/n..._Rambus_Patents.html[/url]
District Judge Robinson's opinion on spoliation in the case of Micron Tech v Rambus Inc http://www.jdsupra.com/po...6b-40e2-a4fd-6da6431d8d63
The very short version of Rambus' settlement with the EU Antitrust commission http://europa.eu/rapid/pr...age=EN&guiLanguage=en

If this were poker I think I'd call. I think JHH would too.
0 0 [Posted by: Borat Demerjian  | Date: 01/31/10 01:42:55 AM]
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