Micron, Rambus End 13-Year Court Battle

Rambus has settled with other companies recently

   

Micron, Rambus End 13-Year Court Battle

Shares of Rambus (RMBS) surged more than 13% in Tuesday morning trading after the company said it had concluded a patent cross-licensing deal with Micron Technology (MU).

12499015 electronic chip on circuit board 300x142 Micron, Rambus End 13 Year Court Battle
Source: iStockphoto

The two companies have spent 13 years battling over a variety of patent infringement and antitrust allegations in courts. Under the deal, Rambus will receive a total of around $280 million in royalty payments over the next seven years, PC World notes.

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Both companies will end all current litigation with each other. The deal gives Micron an option to extend the agreement when it expires.

Rambus, which licenses DRAM technology used in memory chips, has said it is pursuing a strategy to avoid litigation. Earlier this year, it concluded licensing agreements with SK Hynix and STMicroelectronics, ending more than a decade of court fights with each company.

Shares of Micron sank modestly in Tuesday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/micron-rambus-end-13-year-court-battle/.

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