Ambushed by Patents

I've not written about the Rambus case before, because it seemed frankly rather dull. But I was wrong: there is an important principle at its heart:

European Union regulators have charged Rambus Inc. with antitrust abuse, alleging the memory chip designer demanded ''unreasonable'' royalties for its patents that were fraudulently set as industry standards.

The EU's preliminary charges, announced Thursday, come weeks after the U.S. Federal Trade Commission ruled the company deceived a standards-setting committee by failing to disclose that its patented technology would be needed to comply with the standard.

As a result, every manufacturer that wanted to make synchronous dynamic access memory chips had to negotiate a license with Rambus.

Both EU and U.S. antitrust officials allege that this allowed Rambus gain an illegal monopoly in the 1990s for DRAM chips used in personal computers, servers, printers, personal digital assistants and other electronics.

Clearly these kinds of patent ambushes are potentially a general problem, and indicate why real standards must only allow completely patent-free technologies. If a company wants its patented technology to become a standard, it must give its patents.