LOS ALTOS, Calif. (
agreed to resolve all claims and license
patent portfolio covering all Samsung semiconductor products in a deal worth as much as $900 million over five years, the companies said.
Under the agreement, which settles high profile litigation over memory chips, Samsung will invest $200 million in Rambus stock, make an additional payment of $200 million and pay an additional $25 million a quarter for the next five years.
Rambus had filed patent infringement charges against Samsung and other chipmakers. It also had accused Samsung,
of violating antitrust laws by conspiring to boycott its technology.
Under the settlement, Samsung will no longer face those charges, but the case against the other defendants continues, said Sharon Holt, senior vice president of licensing and marketing for Rambus.
Samsung's stock investment contains a put option under which Rambus would repurchase about half the shares after 18 months, if Samsung exercises the option, according to Holt. The quarterly payments would be variable depending on Samsung's sales volumes, she added.
"We have a tremendous opportunity to renew a partnership which has created solutions that have benefited consumers worldwide," said Harold Hughes, president and CEO of Rambus, in a statement.
Rambus and Samsung also signed a memorandum of understanding develop new chips.
Shares of Rambus rose $2.96, or 14%, in after-hours trading Tuesday to $24.09, after closing at $21.13 in regular trading.
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