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Is the Federal Trade Commission (FTC) corrupt?
29 April 2006 | PhilipFreneau

Posted on 04/29/2006 5:39:28 AM PDT by PhilipFreneau

For some time I have been following the legal dilemma of a computer memory design company, named RAMBUS, and their battles to retain their intellectual property rights against four memory manufacturing giants. The more I learn the more I believe the Federal Trade Commission is a corrupt bureaucracy. Perhaps the most comprehensive writing on this issue (in non-legalese) is the following letter I found on the Yahoo Rambus message board.


"The Honorable Pete V. Domenici

United States Senate

328 Hart Senate Office Building

Washington, D.C. 20510-3101

Dear Senator Domenici,

I am writing you regarding an ongoing enforcement action by the FTC against Rambus, Inc. In June 2002 at the behest of Micron and Hynix, two DRAM manufacturers, the FTC filed a complaint against Rambus alleging that Rambus engaged in a pattern of anticompetitive and exclusionary acts and practices constituting unfair methods of competition. The trial, presided over by the FTC’s chief administrative law judge was completed in October 2003. It was the longest and most expensive trial in FTC history (outside consultants alone cost the government 1.1 million dollars). In February 2004 the judge produced a 340 page document called an initial decision which completely exonerated Rambus of any wrongdoing. The judge even went on to suggest that the testimony of many of the witnesses for the prosecution was less than truthful. The FTC commission has the final say in all FTC proceedings and must either accept or reject the initial decision. It has been over 2 years and the FTC has yet to decide. I have to ask why not?

During this same period the Department of Justice has been actively conducting an investigation of price fixing within the DRAM industry. This investigation has led to guilty pleas by Micron, Hynix, Samsung, Infineon, and Elpida, with over 700 million dollars in fines, and prison terms for some employees. Also a number of highly incriminating documents were produced during discovery in this investigation. Unfortunately, these documents only became known after the FTC trial completed. They provide conclusive evidence that the DRAM manufacturers colluded to drive Rambus out of business, they got together and talked about it and, together they fixed prices, together they restricted production, and together they filed simultaneous lawsuits against Rambus all across the country. Finally, the documents provide proof that the CEO of Micron, Steve Appleton, committed perjury during his testimony to the FTC.

The FTC knows about these documents but they have not asked the DOJ for them and Rambus has been prevented from providing them because they are under seal. Still the FTC hasn’t made a decision, they haven't concluded the case against Rambus and they haven't initiated any action against the real criminals in this story. Once again, I have to ask why not? They are just waiting, hoping that something, anything, will be found that they can used to convict Rambus.

Which brings me to the point of this letter, I am requesting a congressional investigation of the FTC. The following facts lead me to believe the FTC is being manipulated by Micron Technology through their political connections in an attempt to crush Rambus.

1. The FTC case was brought at the behest of Micron Technology and Hynix Corp. A nonprofit group, the Voluntary Trade Council, requested disclosure of documents related to the FTC’s case against Rambus under FOIA claiming ……”.There is substantial evidence that suggests the FTC conspired with 3 memory manufacturers to destroy Rambus through regulatory litigation.”. The FTC denied this request and the Voluntary Trade Council has appealed.

2. William Baer, the former director of the FTC Bureau of Competition now works for Arnold and Porter where he has represented Micron in their litigation against Rambus.

3. Timothy Muris, FTC Chairman from June 2001 to 2004 left the FTC for undisclosed reasons and later joined the Law Firm of O’Melveny and Myers who represented Hynix in the FTC case against Rambus.

4. Sean Royall, Deputy Director of the FTC Bureau of Competition June 2001 to 2003, left for undisclosed reasons. When he was appointed by Mr. Muris he was a partner at Gibson Dunn and Crutcher LLP in Los Angeles which represents Micron Technology. He acted as the chief prosecutor in the FTC case against Rambus. Upon completion of arguments in the case Mr. Royall resigned from the FTC and returned to Gibson and Dunn where he was made a partner. Who paid for his services? The FTC won’t say.

5. Robert Pitofsky, FTC Chairman 1995 to 2001 upon retirement from the FTC joined Arnold and Porter, key Rambus antagonists in the FTC case.

6. On 5/11/04 FTC Chairman Muris announced his plan to leave and be replaced by Deborah Majoras who at the time was employed by another law firm with a stake in the case versus Rambus.

7. Amicus Curiae Brief in support of the FTC Complaint Council’s Appeal was filed by Economics Professors and Scholars whose primary author was paid by Micron Technology.

8. On 4/22/2004 the original version of an FTC Complaint Council document appears to have been prepared by Micron lawyers. “Corrected” version appears 5/14/2004.

9. Congressman C.L. Otter is on the subcommittee on Commerce, Trade, and Consumer Protection which has oversight of the FTC. Congressman Otter has had a 30 year involvement with J.R. Simplot, the founder of Micron. Various members of the Simplot family paid Congressman Otter $237,371 in 2002 (twice his congressional salary).

This injustice has gone on far too long and is not over yet. As you have probably guessed I am a very unhappy Rambus shareholder, but I am also a constituent and I need your help. Please Senator, help shed some light on the FTC. They have betrayed their mandate to ensure competition in the marketplace for the benefit of one single company which happens to have tremendous political clout.



xxxxxxxxxxxxxx Albuquerque, NM 87112

Cc: Senator Jeff Bingaman

TOPICS: Government
KEYWORDS: ftc; hynix; infineon; micron; rambus; samsung
The four foreign memory giants--Micron, Hynix, Samsung, and Infineon--have been convicted of, or pled guilty to, conspiring to fix prices on memory chips. Executives from Hynix, Samsung, and Infineon all received prison sentences. Apparently Micron execs rolled on the other three, and received no prison time.

More recently, on April 24, 2006, Rambus won a patent infringement lawsuit against Hynix.

Now if Rambus can only get the FTC to back off...

1 posted on 04/29/2006 5:39:32 AM PDT by PhilipFreneau
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To: PhilipFreneau; sure_fine

"Is the Federal Trade Commission (FTC) corrupt?"

Does a bear poop in the woods?

2 posted on 04/29/2006 6:10:37 AM PDT by butternut_squash_bisque (The recipe's at my FR HomePage)
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To: butternut_squash_bisque

Is the Pope Catholic?

3 posted on 04/29/2006 6:25:19 AM PDT by PhilipFreneau
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To: PhilipFreneau

Just one of the multitudes of govt. agencies that should be disbanded, thrown out like the garbbage they are.

4 posted on 04/29/2006 6:27:26 AM PDT by Joe Boucher (an enemy of islam)
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To: PhilipFreneau

All bureaus are in the corruption business. I don't want anyone thinking that the FTC is somehow special.

5 posted on 04/29/2006 6:36:37 AM PDT by T'wit (Our top bioethicists: 5) Rachel Carson 4) St. Lukes 3) Ted Bundy 2) Margaret Sanger 1) Eric Pianka.)
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To: PhilipFreneau

All government = legalized corruption.

6 posted on 04/29/2006 6:39:06 AM PDT by butternut_squash_bisque (The recipe's at my FR HomePage)
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To: PhilipFreneau

Unelected, unaccountable bureaucracies writing law is, by its nature, a corrupt influence in a democratic republic. The federal bureaucracy is nothing more than the American version of the socialist soviets. Unelected bureaucrats writing law is a primary feature in every dictatorship. They are unaccountable to the people, and the people have no direct means to remove them from office when they engage in theft, political partisanship and undermine our freedoms.

So yes, the bureaucracy is a corrupt entity corrupting the nation.

7 posted on 04/29/2006 7:10:27 AM PDT by sergeantdave (Communism is 3 people voting on what's for dinner but you still get the same old commissar rice)
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To: PhilipFreneau
Is the Federal Trade Commission (FTC) corrupt?

My reading of history suggests that Government, by its very nature, is corrupt.

8 posted on 04/29/2006 7:14:55 AM PDT by The Shootist
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To: The Shootist

>>>My reading of history suggests that Government, by its very nature, is corrupt.<<<

There is corrupt, and there is CORRUPT! The FTC appears to fall in to the latter.

9 posted on 04/29/2006 7:23:43 AM PDT by PhilipFreneau
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To: PhilipFreneau

Some interesting links:,aid,114827,00.asp#,aid,115098,00.asp

10 posted on 04/29/2006 7:40:40 AM PDT by PhilipFreneau
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To: PhilipFreneau
I know this is a really old thread, but the following might be of interest to you: FTC dismisses Rambus case
11 posted on 05/14/2009 1:02:06 PM PDT by jurroppi1 (We need to reward the people that carry the water instead of the people that drink the water!)
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To: PhilipFreneau

Its about as corrupt at the Federal Elections Commission.How else would an Unidentified person of unknown nationality become the President of the United States?

12 posted on 05/14/2009 1:08:15 PM PDT by puppypusher (The world is going to the dogs.)
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