Rambus, Inc. (RMBS)

Rambus, like PCI and PCI-SIG, is an IP holder/owner and apparently not a very good one. In many ways, their sole purpose is to enforce their standards and defend their patents. I would almost consider it more a law firm than a team of engineers. It's nice having standards and in some cases justified. However, sometimes those enforcing standards can become a little too greedy and abusive to manufacturers. I'm not sure I would necessarily call it patent trolling, but they are definitely claiming damages on DDR-SDRAM and related memory controller patents in a very aggressive manor. Companies are not going to want to work with them out of fear of being sued. I would be less excited about owning stock in Rambus. Here is a good even keel article regarding the case:

http://www.idahostatesman.com/103/story/281880.html

Granted, I'm no patent lawyer, so please take these references with a grain of salt. Keep in mind, Rambus doesn't even own the original patents for DRAM, SDRAM, or DDR:

DRAM - http://www.google.com/patents?id=XDwSAAAAEBAJ
SDRAM - http://www.google.com/patents?id=kR4GAAAAEBAJ
SDRAM - http://www.google.com/patents?id=rZolAAAAEBAJ
DDR - http://www.google.com/patents?id=j1YGAAAAEBAJ

They just own memory controller patents that interface with the RAM and this specific design of SDRAM known to some as 'Rambus' SDRAM:

http://www.google.com/patents?id=gocSAAAAEBAJ

MU wasn't the only target in this case. Rambus also sued Samsung, Infineon Technologies, Hynix, Nanya Technology, Inotera Memories, and recently NVidia. Even the FTC is in a legal battle with Rambus. MU will definitely have to pay the piper, but I suspect it will be no more than 200 million judging by previous outcomes with other companies.

No one company should be able to monopolize DRAM technology. Especially when they didn't invent the technology themselves. They are just standing on the shoulders of giants like the defendants. I suspect Rambus potentially shot themselves in the foot and the companies mentioned above are going to migrate to newer technologies, avoid working with them, and dissuade from using this 'Rambus' technology altogether.

I predict Rambus will have a short rally and then plummet in the long run. RDRAM was too expensive and didn't catch on. XDR is just a successor of it. GDDR has since replaced XDR in the market. XDR is only currently being used in the PS3 and we all know the PS3 got slaughtered by Nintendo and XBox. Qimonda, the manufacturer for the XDR for the PS3, just got bought by Micron! The company Rambus has repeatedly attacked! Hmm, I wonder what all the MU layoffs are really for? So who is sporting the Rambus trademark these days? Toshiba?