Rambus, Nvidia sign patent licensing deal
Technology licensing company Rambus Inc. said Wednesday it has signed a licensing agreement with chip maker Nvidia Corp. to settle a long-running patent dispute.
Financial terms of the five-year agreement were not disclosed. The deal allows Nvidia, which makes graphics chips and processors for PCs, tablets and other devices, to use Rambus's technology in a broad range of its products.
"This is an important license agreement as it settles our differences and allows us to move forward with Nvidia, the leader in visual and parallel computing," said Harold Hughes, president and CEO of Rambus, in a statement.
Rambus sued Nvidia as early as 2008, when it claimed that six Nvidia product lines infringed its patents.
Nvidia said in a statement it is "pleased to settle these matters on terms that are fair and logical to us."
The shares of both companies advanced in the wake of the settlement.
Shares of Sunnyvale, Calif.-based Rambus rose 66 cents, or 8.7 percent, to $8.21 in morning trading. The stock has traded in the 52-week range of $4 and 22.20.
Shares of Santa Clara, Calif.-based Nvidia rose 57 cents, or 3.6 percent, to $16.31. The stock has traded between $11.47 and $26.01 in the past year
©2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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