Overview

The European Commission's "patent ambush" investigation against Rambus should serve as a warning to entities engaged in setting industry standards that they should do so in an open and transparent manner.

Neelie Kroes, the outgoing Competition Commissioner, stated that the Commission will vigorously enforce the competition rules in this area.

A patent ambush is the practice whereby the owner of patents underpinning a proposed industry standard conceals the existence of such rights until the standard incorporating that right is adopted and other companies are locked into the standard. Once adopted the patent holder springs the ambush, revealing the existence of its rights, and then demands royalties.

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