logo
  Join        Login             Stock Quote

Rambus (RMBS) On Patent-License Feud, Stock Could Go Up

 February 08, 2012 02:09 PM
 


It appears that designer and patented memory chip developer Rambus (RMBS) should be gaining from the agreement that it has struck with Nvidia (NVDA) thereby clearing the way to use the chip patented by Rambus.

The patent license deal entered by Rambus and Nvidia allows Nvidia to use Rambus patented products in a wider range of integrated circuit products provided by Nvidia. The two companies have also buried the hatchet to settle all pending disputes or claims be it use of patented innovations or otherwise.

[Related -Broadcom Corporation (NASDAQ:BRCM): Solid Core Biz, LTE Progress Could Aid 2014 Results]

The deal also covers five years though financial details were kept confidential. The latest agreement assumes significance as it comes on the heels of a similar deal struck by Rambus on December 22 with another technology company Broadcom (BRCM).

Rambus has been getting revenues through royalties. The agreement with Nvidia and Broadcom ensures that they receive payments for their patented products.

Rambus has sued some of the chip makers, including Broadcom and Nvidia, on December 1, 2010. The company took the patent infringement issue with International Trade Commission for a solution.

But the agreement reached between the two major companies with Rambus somewhat indicates that Rambus seemed to have prevailed upon about its patents. The deal would also allow all companies to focus on their business, which is witnessing stronger growth than any other sector.

[Related -Is Intel (INTC) About To Buy One Of These Companies?]

Rather than fighting the case, settling the patent issue and moving ahead make sense for the three companies involved. The demands for ICs seem to be increasing with the growth of smart phones, e-readers and tablet PCs.

Rambus too has been forced to come to a settlement after it had lost an anti-trust case against Micron Technology and Hynix Semiconductor on November 17. The latest deal also comes on the heels of the unfavorable ruling from U.S. Patent and Trademark. The body ruled that three of Rambus' patents, which were part of Rambus violation claim against Nvidia, were not valid. Rambus shares, which took a beating after it lost its case in November, are retreating from the lows. Now with two deals under its wrap, there could be something more to cheer up the investors as the company's action clearly indicate one thing, i.e. It wants to settle the patents issue amicably and move forward. This means less litigation charges for the company and more royalty revenues.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageDelta Air Lines (DAL): Panic Selling Makes This Airline Stock Ripe For A Quick Pop

If there ever were a teaching moment in the stock market, it was this week. Earnings, trendlines and read on...

article imageInvesting In The Time Of Ebola

Volatility is back in the market. Whether we are being tossed and turned by the Ebola crisis, Russian read on...

article imageMarket Volatility Continues But Is Bottom In?

The market’s volatility continues, and it has the outlook and expectations of the financial media jumping read on...

article imageBrazil's Petrobras Attracts Bullish Options Play

Brazilian stocks advanced with ADR shares in state-owned oil company Petroleo Brasileiro SA (Ticker: PBR) read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.