Elpida Memory bondholders' patent sale reconsideration motion denied

By Caroline Salls

Pittsburgh, Feb. 15 - A request by the steering committee of an informal group of Elpida Memory, Inc. bondholders for reconsideration of a court order approving the $15 million sale of patents to Rambus Inc. was denied Friday by the U.S. Bankruptcy Court for the Southern District of New York.

The committee's motion for reconsideration of a related order approving a technology transfer and license agreement and a patent license agreement between Elpida and Micron Technology, Inc. was also denied.

As previously reported, the patent sale approval came over the objection of the informal group of Elpida's bondholders, who sought the right to sell the U.S. assets as a way to gain a recovery in the bankruptcy process.

Under the agreement, Rambus will grant a royalty-free, perpetual license to Elpida for about 1,800 patents, protecting Elpida's estate from patent infringement suits and permitting Elpida continued use of the technology.

The patent purchase agreement also includes a provision that protects Micron from a lawsuit by Rambus.

The Tokyo District Court, Eighth Civil Division, approved the patent purchase agreement on Aug. 10 where Elpida filed for corporate reorganization under the Japan Corporate Reorganization Act.

Elpida, a Tokyo-based manufacturer of DRAM integrated circuits, filed for bankruptcy on March 19, 2012 to gain recognition of its Japanese proceedings. Its Chapter 15 case number is 12-10947.

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