White & Case Helps Rambus Resolve Its Case with the European Commission
Brussels,
January 19, 2010 ... Global law firm White & Case LLP successfully represented Rambus, the market leader in the provision of DRAM technology and related engineering services, in a European Commission ("the Commission") investigation. On 9 December 2009, following a long and detailed examination of the facts, the Commission closed the case without making any finding that Rambus violated the law – and without imposing any fine. "We are delighted that the European Commission has closed the case against Rambus," commented James Killick, White & Case partner based in Brussels. "It is rare for the European Commission to conclude Article 82 cases in this manner, and this decision continues our recent run in securing successful outcomes in EU competition cases for our clients." Rambus is a small innovative US company active in the design, development and licensing of DRAM (computer memory) technology. In the early 1990s, it participated in JEDEC, a US standardisation organisation which sets non-compulsory industry standards. The Commission had in August 2007 adopted a statement of objections setting forth allegations that Rambus' conduct in JEDEC was illegal under what was then Article 82 of the EC Treaty (now Article 102 TFEU). This is one of the first cases brought by the Commission under Article 82 in the standard-setting field. Rambus then turned to White & Case because of its leading reputation in the area of standard setting and the obligations on dominant companies, and its knowledge of the wider question of where the appropriate boundaries between IP and the competition rules lie. In the Commission investigation, the White & Case team helped Rambus explain the rules of JEDEC, the facts of what actually happened in JEDEC meetings, as well as the applicable legal principles under EC law. Rambus has always denied any wrongdoing. In particular, it denied having infringed any disclosure duty while at JEDEC or having charged too high royalties. Rambus argued that its technology was being used unfairly by DRAM manufacturers who refused to pay royalties. In parallel proceedings in the US, Rambus' position that it did not violate JEDEC policies was upheld by the Federal Courts, which rejected the US Federal Trade Commission's arguments, which closely resembled those of the Commission. In addition, a jury in San Jose rejected the premise that Rambus violated JEDEC rules or otherwise engaged in unfair practices regarding its JEDEC activities. In June of last year, Rambus offered commitments to the Commission under which it will offer licenses with maximum royalty rates for certain memory types and memory controllers on a forward-going basis. Following market testing, these commitments were accepted by the Commission in a decision adopted on 9 December 2009, which brings the case to a close, with no finding of infringement. It is rare for the Commission to conclude Article 82 cases in this manner. The White & Case team that advised Rambus was led by James Killick and fellow Brussels competition partners, Ian Forrester and Mark Powell, assisted by Pascal Berghe, Charlotte Burnett, Nele Govaert and Stefan Mahoney. Other recent notable successes for the Brussels based competition team include:
- Securing the largest fine reduction in European Commission history, when a fine imposed by the Commission on Nintendo was reduced by €30 million.
- A victory for GSK that hindering parallel trade does not constitute a per se infringement. This was the first time that the ECJ has annulled a Commission refusal to grant an individual exemption following a notification pursuant to the old notification system.
- The team is currently working on a number of Commission investigations and appeals of Commission Decisions to the ECJ including two of the most important pending cases, namely Intel’s appeal against the fine of €1.06 billion imposed by the European Commission and Microsoft’s appeal against the imposition of a fine of €899 million by the European Commission.
About White & Case
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