Rambus, Inc. v. Infineon Technologies AG.

326 F. Supp. 2d 721, 2004 WL 1607061
District Court, E.D. Virginia·Decided July 13, 2004·No. CIV.A. 3:00CV524·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION

PAYNE, District Judge.

This matter is before the Court on two motions filed by Rambus, Inc. (“Rambus”) seeking summary judgment against Infi-neon. 1 The motions are based on overlapping factual predicates; and, therefore, they will be considered in a single opinion. First, there is Rambus’ Motion for Partial Summary Judgment on Infineon’s Fifteenth Counterclaim — That Rambus’ Conduct was “Fraudulent” in Violation of Cal. Bus. & Prof.Code Section 17200 (Docket No. 700). Second, there is Rambus’ Motion for Summary Judgment on Infineon’s Equitable Estoppel Defenses (Docket No. 704). For the reasons set forth below, Rambus’ motions are denied.

There is significant overlap in the factual predicates for Infineon’s equitable es-toppel defense and its claim under Cal. Bus. & Prof.Code Section 17200 to the extent that that claim is based upon allegedly fraudulent conduct (the “Section 17200 claim”). 2 And, Rambus’ arguments for summary judgment on both the equitable estoppel defense and the Section 17200 claim are based, in the first instance, on a posited set of facts which, in reality, do not fairly depict either the equitable estoppel defense or the Section 17200 claim as Infi-neon actually presents them. Infineon’s responsive briefs set forth the theory of, and the factual predicates for, its equitable estoppel defense and its Section .17200 claim in a much more limited way than Rambus has sought to cast them in an effort to have them controlled by the decision of the United States Court of Appeals for the Federal Circuit on Infineon’s common law fraud claim. Rambus, Inc. v. Infineon Tech. AG, 318 F.3d 1081 (Fed.Cir.2003). The briefing and oral argument of these motions for summary judgment have served to confirm that Infineon’s defense and claim are as set forth below, and it is incumbent on the Court to assess the motion for summary judgment against the factual context articulated by Infineon and not in the context which- Rambus artificially has constructed, largely so that it can make the principal argument on which it seeks summary judgment. 3 Hence, the facts recited below are as posited by Infi-neon for its equitable estoppel defense and its Section 17200 claim. Of course, at this stage of the proceedings, Infineon is enti- *723 tied to the benefit of all reasonable inferences which can be drawn from the facts for which there is evidentiary support.

STATEMENT OF FACTS 4

Rambus was founded in March 1990. The founders were the two inventors named on United States Patent Application Serial No. 07/510,898 (the “ ’898 Application”) which was filed in the United States Patent and Trademark Office (“PTO”) on April 18, 1990. .Also, in 1990 and 1991, Rambus filed Patent Cooperation Treaty (“PCT”) and European patent applications that claim priority to, and have disclosures substantively identical to, the ’898 Application. 5 The claims of the ’898 Application and its PCT and European counterparts were directed to a type of dynamic random access memory architecture (“DRAM”) designed by Ram-bus to which Rambus gave the sobriquet,

“RDRAM.”

Rambus is a technology company. In other words, it does not itself manufacture any tangible products. Rather, its assets and its products are the technology that it invents and licenses. That is what Ram-bus has called its “business model.”

In the early 1990’s, Rambus set out to license its proprietary, but, as of then, unpatented, RDRAM architecture to DRAM manufacturers including Infineon’s predecessor Siemens Corporation. 6 Notwithstanding that Rambus had no patents for the RDRAM architecture, it fastened its business plans on licensing the technology outlined in the ’898 Application. Thus, in the early 1990’s, Rambus regularly met with DRAM manufacturers in an effort to license the technology in the ’898 Application. Before those meetings, it was the practice of Rambus to execute nondisclosure agreements with the DRAM manufacturers and then to discuss fully its proprietary information, including the technology and architecture in the ’898 Application. And, as part of those meetings, Rambus informed the DRAM manufacturers that its business model was to invent and license DRAM technology.

As explained by counsel for Rambus during the original trial of this action, once the nondisclosure agreements were signed (with approximately 60 companies in the DRAM industry), Rambus revealed documents and technical descriptions that supposedly contained everything that was in the ’898 Application. Aso, according to Rambus’ counsel, the companies that asked to see the ’898 Application were shown it. All of this was accomplished in Rambus’ attempts to negotiate licenses with DRAM manufacturers in efforts to implement the Rambus business model.

In February 1990, Infineon and Rambus entered into discussions respecting a possible RDRAM license. As part of that pro *724 cess, Infineon executed a nondisclosure agreement and, thereafter, reviewed Ram-bus’ RDRAM proprietary information.

Between 1990 and 1992, and again in 1994, Rambus representatives met with In-fineon on several occasions in an attempt to convince Infineon to take a license to manufacture RDRAMs. During those meetings, Rambus explained the Rambus business model (inventing technology and licensing it). In these meetings, Rambus affirmatively represented to Infineon that Rambus considered itself the inventor of RDRAM, informed Infineon of the ’898 Application, and advised that Rambus intended to obtain patents for RDRAM. During the same discussions, Rambus discussed the supposed advantages of the RDRAM architecture over other memory technologies, including the SDRAM 7 technology which, by virtue of exchanges of information that occurred during those meetings, Rambus knew that Infineon was then developing.

At the time that those negotiations were occurring in 1992 and 1994, both Rambus and Infineon were among the participants in an effort to develop a standard for the SDRAM at the Joint Electronics Devices Engineering Council (“JEDEC”). 8 From its meetings with Infineon, as well as the JEDEC meetings, Rambus was aware that Infineon considered the SDRAM technology that was the subject of the JEDEC standard setting process to be open and not subject to the intellectual property rights of others if practiced within the constraints of the JEDEC standard.

At no time during the licensing discussions between Infineon and Rambus did Rambus inform Infineon that Rambus considered itself to have invented SDRAMs (or any other non-RDRAM memory architecture for that matter), nor did Rambus advise Infineon that it was seeking to obtain, or planned to enforce, any patents covering other memory architectures. Likewise, at no time during those discussions did Rambus advise Infineon that Rambus considered the SDRAM technology to use any of Rambus’ technology.

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Rambus, Inc. v. Infineon Technologies AG., 326 F. Supp. 2d 721, 2004 WL 1607061 (E.D. Va. 2004).

326 F. Supp. 2d 721 (Rambus, Inc. v. Infineon Technologies AG.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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