Examines the role of technology licensing in strategies for high-tech companies. In the 1990s, Rambus developed a revolutionary storage technology that would improve the ability of DRAM to keep up with ever-faster microprocessors. To commercialize the technology, Rambus licensed the technology to several DRAM supplier that had to agree that Rambus to Cross-License Any improvements a licensee to all other licensees. In his attempt to set the standard for the industry, faced Rambus … Read more »

Examines the role of technology licensing in strategies for high-tech companies. In the 1990s, Rambus developed a revolutionary storage technology that would improve the ability of DRAM to keep up with ever-faster microprocessors. To commercialize the technology, Rambus licensed the technology to several DRAM supplier that had to agree that Rambus to Cross-License Any improvements a licensee to all other licensees. In his attempt to set the standard for the industry, faced Rambus competition from higher frequency versions of standard DRAMs, a consortium of DRAM manufacturers and system houses, as SyncLink Consortium known, and an alternative DRAM technology as Double Data Rate SDRAM known. Rambus’ relationship with Intel, the dominant producers of microprocessors not prove as successful as each party would have wished. Rambus was even more devastating to his disputes with several of its customers, the DRAM vendors, and a suit by the Federal Trade Commission. Was allowed although most of the complaints against Rambus had dropped in 2004, Rambus had a new strategy to build their business for the future.
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from
David B. Yoffie,
Debbie Free
Source: Harvard Business School
23 pages.
Release Date: 03 Jun, 2004. Prod #: 704500-PDF-ENG
Rambus Inc. 2004 HBR case solution

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