May 26, 2009 / 10:08 PM / in 8 years

UPDATE 1-US court orders payment secured in Rambus case

SAN FRANCISCO, May 26 (Reuters) - Rambus Inc (RMBS.O) shares jumped more than 5 percent on Tuesday when a U.S. District Court ordered Hynix Semiconductor Inc (000660.KS) to secure the amount it owes Rambus in a patent suit, and the company unveiled new memory technology.

Judge Ronald Whyte in March ordered Hynix to pay chip designer Rambus about $397 million for infringing on DRAM patents.

On Tuesday the court ordered Hynix to post a $250 million bond within 45 days and take the remaining $147 million as a lien against its manufacturing facilities in Korea.

The court also ordered Hynix to pay ongoing royalties into an escrow account, rather than allowing them to accrue until the court rules on an appeal.

“There was a lot of fear that Hynix was going to go bankrupt and a lot of people thought they might get a $400 million hollow judgment that you can’t collect,” said MDC Financial Research analyst Mike Cohen, who owns shares in Rambus. “When they see security there, obviously that’s a good thing for Rambus.”

Rambus also said on Tuesday it has designed new memory technology that will improve speed and power efficiency in memory chips used in computers and other electronic devices.

Shares of Rambus closed up 62 cents, or 5.17 percent, at $12.61 on Nasdaq.

Reporting by Clare Baldwin; Editing by Richard Chang

Our Standards:The Thomson Reuters Trust Principles.
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