Business End of an era: Micron and Rambus settle decades-old litigation

Business End of an era: Micron and Rambus settle decades-old litigation

2013/12/11

Rambus and Micron have settled their legal dispute. This is as epic a result as the resolution of Jarndyce vs Jarndyce.

“This milestone agreement puts years of legal disputes behind both companies and opens doors for future cooperation,” says Rambus CEO Dr. Ron Black, “we continue to focus on developing innovative technology and furthering our more open, collaborative relationship with the broader industry.”

The two companies have settled all outstanding patent and antitrust claims, and the agreement covers both Micron and Elpida products.

The two companies have signed a broad patent cross license agreement under which Micron gains the right to use any Rambus patent for the manufacture of specified ICs including memory ICs.

Certain memory ICs will enjoy a perpetual, paid-up license after the end of the initial term.

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.

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

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