Rambus shares up after favorable ruling
NEW YORK (AP) — Shares of Rambus Inc., which designs memory chips, jumped Monday after it received a favorable ruling in a long-running court case.
THE SPARK: Rambus said Sunday that a federal judge in California has ruled that Rambus patents at issue in its suit against Korean chipmaker SK Hynix are valid and that Hynix should pay royalties for past infringement.
THE ANALYSIS: The case has been going on since 2000, and the ruling is just one phase of it. The judge also found that Rambus destroyed evidence, but didn't do so deliberately. That finding limits the royalties SK Hynix will have to pay, the Korean company said.
Rambus was dealt a bigger setback in November, when a jury denied it billions of dollars in damages in an antitrust case. Rambus alleged that Hynix Semiconductor Inc. and fellow U.S. chipmaker Micron Technology conspired to fix prices of memory chips in order to hike the prices of products for which Rambus licenses the rights.
SHARE ACTION: Rambus shares rose 95 cents, or 19.3 percent, to $5.88 in afternoon trading. The shares are still close to their 10-year low of $3.78 hit two months ago.