Micron to pay Rambus $280M, ending 13-year court battle


Micron (MU) has agreed to pay Rambus (RMBS) $280M over seven years in order to use the latter's patents in certain products.

The chip makers have also dropped all pending litigation, thereby ending a 13-year court battle.

The deal is the latest one that Rambus has signed in the past few months as it looks to settle legal disputes and focus on its main business. In June, Rambus settled with SK Hynix for $240M and with STMicroelectronics soon after. (PR)

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Comments (3)
  • Jaret Wilson
    , contributor
    Comments (1197) | Send Message
     
    The headline seems misleading to me. The PR says that the payments will be, "capped at $10 million per quarter" which implies that the payments could total less than $280M. If it is a fixed amount it would not be necessary to refer to it as a "cap."
    10 Dec 2013, 03:59 AM Reply Like
  • unabletoplaytennis
    , contributor
    Comments (29) | Send Message
     
    I think what this means is Micron pays $10 million per quarter but
    it is capped at that amount even if they sell more products using the technology license.
    10 Dec 2013, 04:03 AM Reply Like
  • Randal James
    , contributor
    Comments (4415) | Send Message
     
    What it looks like to me is that MU contribution will wipe out nearly everything Rambus has done to itself in its long period of decline. Seems pretty generous to me but MU can now move forward and, if sucked up by Intel, can use the agreement as a definitive protection.

     

    And who knows? Those fabs that Intel is building may simply be part of an agreement with MU to work together. We disallow mergers for competitive reasons but do we discourage partnerships? Not that I recall and this particular one could be immensely profitable.
    10 Dec 2013, 04:41 AM Reply Like
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