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UPDATE: Nvidia: Patent Office Rejects 17 Rambus Patent Claims



(Adds Rambus comment, updates stock quotes.)

DOW JONES NEWSWIRES

Nvidia Corp. (NVDA) said the U.S. Patent and Trademark Office has rejected 17 claims that Rambus Inc. (RMBS) made against Nvidia in the latest ruling in the patent fight between the two chip makers.

Nvidia said the decision follows a preliminary rejection of the claims earlier this year, and claimed it continues a string of victories for Nvidia. Eight claims on two other patents in the case have yet to receive a final decision from the federal office.

"We believe these [Rambus] patents are invalid and are confident that a similar decision will be made on the patents that continue to be examined," David Shannon, Nvidia's general counsel, said in a statement.

Linda Ashmore, a Rambus spokeswoman, said the patents remain valid and enforceable as issued until the re-examination proceedings are concluded, including all appeals.

Shares of Rambus, which mainly generates revenue from the royalties it collects on patents, fell 2.9% to $17.85 in late trading, while Nvidia's shares rose 0.6% to $13.

The two companies have long been embroiled in lawsuits and court battles over their memory technologies. Rambus has alleged in a trial currently ongoing that Nvidia uses its technology in its computer-based graphics chips.

Both sides have managed to get regulators to rule for their side, with the U.S. Patent office ruling against claims by Rambus earlier this year, and the U.S. International Trade Commission saying last month it supports Rambus' claim that Nvidia illegally uses Rambus technology and recommending a ban on imports of Nvidia's graphics chips.

-By David Benoit, Dow Jones Newswires; 212-416-2458; david.benoit@dowjones.com


  (END) Dow Jones Newswires
  11-24-091901ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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