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.
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.