Trade commission to bar import of Nvidia technology as patent dispute with Rambus grinds on

By AP
Monday, July 26, 2010

Rambus patent battle with Nvidia grinds on

SEATTLE — Chipmaker Rambus Inc. said Monday that The U.S. International Trade Commission plans to stop competitors from bringing products into U.S. that contain its patented technology.

In April, the trade commission decided that Nvidia Corp.’s technology infringes on several of Rambus’ patents.

Rambus had filed a complaint against Nvidia, which makes computer graphics chips and other technology, plus device manufacturers including PC makers Hewlett-Packard Co. and Asus Computer International Inc., in 2008. Rambus argued that Nvidia chips infringe on its patents related to the workings of memory systems in computers, gaming consoles and mobile devices.

Rambus said in a statement Monday that the trade commission intends to issue a limited exclusion order, which bars Nvidia and the device makers from importing and selling products that contain the technology in question.

The companies could import and sell the products during a 60-day review period, Rambus said, if they post a bond of 2.65 percent of the value of the products.

The trade commission’s final determination has not yet been published.

Nvidia spokesman Hector Marinez said in a statement that the ruling will not affect the company’s customers or business, because the chipmaker plans to use a license the European Commission required Rambus to make available as part of an ongoing antitrust investigation there.

The license will prevent the trade commission’s order from being enforced, Marinez said.

Nvidia said it plans to appeal the case and press its arguments before the U.S. Patent and Trademark Office.

Shares of Los Altos, Calif.-based Rambus jumped $1.47, or 7.5 percent, to $21.06 in after-hours trading, while Nvidia’s stock dipped 15 cents to $10.40.

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