SUNNYVALE, Calif. (AP) -- Chipmakers Rambus and Micron Technology said Tuesday that they signed a broad patent license agreement and settled all of the patent disputes between them.
The news sent shares of Rambus Inc. up $1.17, or 14 percent, to $9.70 in premarket trading. Shares of Micron technology Inc. rose 28 cents to $23.40.
As part of the deal, Micron gets the right to use any Rambus patent for the manufacture of certain integrated circuit products. Some of the memory products will come with a perpetual, paid-up license after the end of the initial term, the companies said.
The deal requires quarterly royalty payments to Rambus over the next seven years capped at $10 million per quarter, with a rolling 12-month cap fixed at $40 million, or $280 million during the initial term. Micron also can renew the deal after the initial term.
As part of the deal, the two companies have settled all outstanding patent and antitrust claims. Other terms and details of the agreement are confidential.
Rambus President and CEO Ron Black said the deal "puts years of legal disputes behind both companies and opens doors for future cooperation."