Lawyer: Rambus Shredded Evidence
Rambus Inc., a designer of high-speed computer memory chips, held annual “shred days” to destroy evidence related to its patent litigation plans and then tried to cover up its actions, a lawyer for Infineon Technologies alleged.
Infineon wants U.S. District Judge Robert Payne to throw out a patent-infringement lawsuit Rambus filed against the German chip maker. The trial is set to begin Feb. 22 in Richmond, Va.
Over two days of recent hearings, Infineon accused Rambus of purposely destroying documents and then misrepresenting facts on its actions.
“They’re destroying all these documents and allowing these witnesses to give us this kind of junk, over and over,” Infineon lawyer John Desmarais said. He said Rambus witnesses gave false statements because they “thought all the documents were destroyed and they could get away with it.”
Rambus, which is based in Palo Alto, Calif., claims that its patents cover aspects of all memory chips made in the $26-billion industry and is seeking royalties from Infineon and other companies that refused to sign licensing agreements. The company said it destroyed documents as part of a policy that emulates ones carried out by other companies and said some witnesses were just mistaken, not liars.
“Infineon’s conduct has been the same as Rambus’,” said Rambus lawyer Gregory Stone. “This is not a case where Infineon can claim or any court could say that Infineon doesn’t have enough documents to prove its case.”
Companies are allowed to have document retention policies to control clutter. They aren’t allowed to destroy documents to improve their chances of winning a lawsuit or criminal case.
Payne, who took the unusual step of holding a hearing Saturday because of the Feb. 22 trial date, said he would rule as soon as possible. If he dismisses the patent-infringement allegations, then still remaining would be a charge by Infineon that Rambus sought to monopolize the market for memory chips.
Burlap sacks were handed out to employees, and 150 bags of items were shredded in 1998, 200 bags in 1999 and 460 bags in 2000, after Rambus had become involved in litigation, Desmarais said. A party with pizza, beer and champagne was held after the 1998 shred day, he said.
Rambus “destroyed highly relevant documents touching on all aspects of this case,” Desmarais told Payne, saying the documents included evidence of Rambus’ patent strategy and its attendance at meetings of a board setting industry standards for memory chips.
Stone said the items destroyed included documents available anywhere publicly, telephone books, magazines and stacks of computer printouts kept by “pack rat” employees. Just dumping the documents in the trash wasn’t acceptable because people had been seen rifling through the bins, most likely searching for food or items of value, he said.
Stone urged Payne to judge Rambus’ conduct when compared with the conduct of Infineon. The Munich-based chip maker and four of its executives have pleaded guilty to price-fixing charges in the U.S. The company also was found by Payne to have destroyed documents.
“I’m not saying two wrongs make a right,” Stone said. “I’m saying you need to say you can’t draw different inferences” from the document destruction by both companies.
Rambus designs memory chips that are made by other companies and used in computers and other electronics such as Sony’s PlayStation. Many of the arguments Desmarais made were based on information Infineon received after Payne ordered Rambus to turn over documents that the company maintained were private because of attorney-client privilege.
U.S. District Judge Ronald Whyte in San Jose ordered Rambus on Feb. 1 to turn over the same documents to Hynix Semiconductor Inc., another company that Rambus is suing.
