FTC Claims Rambus Lost Right to Trial

Rambus Inc. has forfeited its right to trial and should be declared at fault in a patent-related civil fraud case because the computer-chip designer destroyed documents, the Federal Trade Commission said.

The FTC asked an administrative law judge to move directly to the punishment phase of the case. The agency charged in June that Rambus used information obtained at industry standard-setting meetings to amend patent applications so its designs would meet the standard. Rambus destroyed company papers related to those meetings, the FTC said.

At stake is as much as $100 million in annual royalties the FTC said it may try to force Rambus to give up, as well as Rambus’ right to pursue other royalty agreements.

Shares of Rambus fell 53 cents to $7.99 on Nasdaq.