Rambus sued the chip makers Micron and Hynix

A California jury has decided against Rambus in an antitrust lawsuit it filed against chip-makers Micron and Hynix. A jury determined Wednesday that Micron Technology Inc. and Hynix Semiconductor Inc. did not conspire to fix pricing of memory chips.--Rambus had alleged that the two companies conspired to make Rambus-designed chips more expensive and keep the company out of the market.

The jury also found that neither Micron nor Hynix conspired with each other or with Infineon or Samsung to harm Rambus' relationship with computer chip maker Intel Corp. The case was before the California Superior Court in San Francisco.--Rambus sued the chip makers in 2004. Rambus has become notorious in technology circles for its multiple lawsuits against numerous companies, including Samsung and Nvidia. Shares at Rambus fell sharply by 61 per cent after the jury's decision, while Micron's shares shot up over 23 per cent and Hynix shares went up nearly six per cent.

Rambus Inc. lost more than 60% of its market value Wednesday, after a San Francisco jury rejected the Silicon Valley company's allegations in an antitrust case that sought billions of dollars in damages. The jury, in a 9-3 vote after more than eight weeks of deliberations, ruled that defendants Micron Technology Inc. and Hynix Semiconductor didn't conspire to prevent Rambus technology from taking hold in the market. A jury delivered a major legal defeat to Rambus in a closely watched antitrust case against Micron Technology and Hynix Semiconductor, sending Rambus shares tumbling 60 percent.

The case against Micron and Hynix was filed in San Francisco County Superior Court in 2004. Trading in Rambus shares was halted for several hours pending the verdict. After failing in its initial strategy, Rambus began filing patent infringement suits against chip makers. Rambus also filed the private antitrust suit, which accused Micron and Hynix of price-fixing and other illegal joint actions. Micron and Hynix insisted in the antitrust case that any failings of Rambus in the market were due to issues with its technology and other factors.

Steve Appleton, Micron's chief executive, praised the jury for finding the Rambus allegations without merit.--Hynix said it was "grateful" the jury "rejected Rambus's meritless claim," in a statement issued by O.C. Kwon, its chief executive. The jury ruled against Rambus on the two fundamental questions in the case.--One asked whether Hynix and Micron conspired to artificially keep the price of chips using Rambus technology high and a competing technology low to hurt the company's prospects in the market. Another asked whether the Hynix and Micron had obstructed relations between Rambus and Intel.