Alliance Semiconductor

(ALSC)

agreed to pay

AMD

(AMD) - Get Report

an undisclosed amount to settle a patent infringement lawsuit.

The semiconductor companies agreed to drop all claims and counterclaims in the suit AMD initiated in 1996. AMD claimed that Alliance's flash memory devices infringed on two AMD patents.

The companies will sign a royalty bearing license agreement for future sales of the two flash memory products and discuss future joint projects.

Alliance was down in recent

Nasdaq

trading, slipping 44 cents, or 3.1%, to $13.88. AMD made a slight gain in

New York Stock Exchange

trading, rising 6 cents, or 0.4%, to $16.81.