FTC Partially Stays Rambus Royalty Cap Ruling

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Rambus

(RMBS) - Get Report

said Monday that the Federal Trade Commission has stayed a portion of an order capping its ability to collect royalty payments.

The stay is effective upon Rambus filing an appeal to the FTC's previous decision that the company

violated antitrust regulations and engaged in a course of deceptive conduct in order to monopolize the computer memory market, as well as a separate order laying out specific remedies for Rambus' actions.

Shares of Rambus rose 6%, or $1.20, to $21.03 in extended trading Monday.

Rambus, based in Los Altos, Calif., designs and licenses technology related to computer memory.

In February, the FTC issued its remedy for Rambus' violations, imposing maximum limits to the amount of royalties Rambus can collect on SDRAM and DDR SDRAM memory.

"This matter deals with conduct that allegedly took place many years ago, and we intend to appeal the Commission's full order," said Rambus General Counsel Tom Lavelle in a statement.

According to Rambus, the FTC's stay also clarifies that the royalty caps do not apply to previously collected royalties and that Rambus does not need to refund royalties that have already been paid.