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Rambus Wins Patent Victory

A jury awards $307 million for Hynix Semi infringements.

Updated from 1:13 p.m. EDT



won a major court victory Monday, when a jury found that South Korea's

Hynix Semiconductor

infringed on the company's patents.

A federal court jury in San Jose, Calif., found that Hynix, the world's No. 2 computer memory maker, infringed on all 10 patent claims at issue, and awarded Rambus $307 million. At issue were various flavors of memory interfaces, including DDR, DDR2 and SDRAM, used in personal computers and servers.

Shares of Rambus, which recently resumed trading following a halt, were up $5.68, or 14.7%, to $44.28.

The verdict sets an encouraging precedent for Rambus, which has similar patent infringement suits pending against



Micron Technology



"We are very pleased with today's result -- and very thankful for the considered attention of the jury and the court in this lengthy trial," said Rambus General Counsel John Danforth in a statement.

Los Altos, Calif.-based Rambus designs and licenses intellectual property involving the interface technology used in computer memory chips.

A Hynix spokesperson declined to comment on the decision.

Rambus went into the Hynix trial with some nice momentum. In January, Judge Ronald Whyte ruled against Hynix's claims that Rambus unlawfully destroyed documents related to the case. And Rambus had won summary judgments for two of the 10 patent claims at issue before the trial got under way.

"This was a Rambus victory across the board and an even better result than I expected," said Pacific American Securities analyst Michael Cohen, who owns 500 shares of Rambus stock.

According to Cohen, Rambus' expert witness in the patent infringement trial recommended that the jury award Rambus $108.6 million in damages, but sketched out scenarios for further damages.

The bulk of the damages reportedly relate to DDR memory technology, with about $30 million involving SDRAM.

Rambus' award is based on only on Hynix's U.S. sales between 2000 and 2005.

Rambus has also asked for permanent injunctive relief to stop Hynix from manufacturing and selling memory chips using the patents, something which will be decided upon in a separate phase of the case involving Hynix counterclaims, slated to go to trial in the summer.