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Friday, September 22, 2006

Rambus Gapping Down on New Patent Concerns

There is an article at EE Times that posted last night which is a potential jeopardy for Rambus' business model. While this would not be applicable to 100% of the business, it would be a bad development for the company. Lawyers for the U.S. Federal Trade Commission (FTC) have filed a brief arguing that memory chip technology licensor Rambus Inc. be barred from enforcing its pre-1996 patents on Jedec-compliant products.

The full article can be read here. It should probably be noted that most of the articles at EE Times on Rambus tend to have a negative approach, butthat may just be because that is how the headlines have been hitting.

Shares of Rambus (RMBS) are trading down over 3% at $16.60 pre-market on over 150,000 shares. This is yet another potential hickey for the company, and this comes after its rapid share rise. In mid-August its shares ran from just over $10.00 up to $19.00 before RMBS shares softened in the last few days.

Jon C. Ogg
September 22, 2006

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