Rambus Inks License Deal With Micron; Agreement Settles All Outstanding Disputes

(RTTNews) - Rambus Inc. (RMBS) announced that it has signed a broad patent cross license agreement with Micron Technology, Inc.(MU). The agreement requires quarterly royalty payments to Rambus over the next seven years capped at $10 million per quarter, with a rolling twelve-month cap fixed at $40 million, or $280 million during the initial term.

Under deal, Micron gains the right to use any Rambus patent for manufacture of specified integrated circuit products, including any memory integrated circuit products. Certain of these memory products will enjoy a perpetual, paid-up license after the end of the initial term.

In addition, Micron will have the option to extend the initial term of this agreement for additional renewal periods.

As part of this agreement, the two companies have settled all outstanding patent and antitrust claims, and the agreement covers both Micron and Elpida products.

Rambus said it will continue to focus on developing innovative technology and furthering more open, collaborative relationship with the broader industry.