Patent licensing company Rambus has announced that it has signed a patent licensing deal with chip maker Broadcom, putting an end to the lawsuits between the two companies.
The five-year deal, whose financial details were not disclosed, will see Broadcom licensing Rambus patents related to integrated chip technology. The licensing deal also ends a lawsuit filed by Rambus against Broadcom.
The patent infringement lawsuit was filed with the US International Trade Commission. Rambus, which holds patents for several chip related technologies, usually makes money by licensing deals or suing chip makers.
The company's stock increased by 8 per cent to $7.92 after the deal was announced. According to Reuters, the company's share price has shed 62 per cent of its value since it lost a $4 billion patent infringement lawsuit with Micron Technology and Hynix Semiconductor.
"We are pleased to have reached this agreement with Broadcom, a global leader in the semiconductor industry," said Sharon Holt, senior vice president and general manager of the Semiconductor Business Group at Rambus.
"We are committed to continuing the development of innovative technologies to help our licensees deliver great products to the market."