Silent Patent Holders May Deceive Standard Setting Organizations

Case: In re Rambus, Inc., Federal Trade Commission Docket No. 9302 (August 2, 2006)

The One Sentence Summary: By unanimous vote, the FTC determined that computer technology developer Rambus, Inc. unlawfully monopolized the markets for four computer memory technologies that were incorporated into industry standards for DRAM (dynamic random access memory chips).


FTC Findings:

• Rambus engaged in a course of deceptive conduct through its participation in an industry-wide standard-setting organization, the Joint Electron Device Engineering Council (JEDEC). JEDEC sought to avoid the incorporation of patented technologies into its standards, or, at a minimum, to ensure that any patented technologies that were incorporated would be licensed royalty-free or on reasonable and non-discriminatory terms. Rambus participated in JEDEC's DRAM standard-setting activities for more than four years without disclosing its possession and development of patents and patent applications involving the technologies adopted into the standards.
• Rambus' conduct constituted deception under Section 5 of the FTC Act, exclusionary conduct under Section 2 of the Sherman Act, and contributed significantly to Rambus' acquisition of monopoly power with regard to four DRAM technologies.
• Rambus' claim that the superiority of its patented technologies was responsible for their inclusion in JEDEC's standards was not established by the record.
• The FTC requested additional briefing before exercising its remedial powers.