Why Rambus Shares Popped

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What: Shares of Rambus have popped today by as much as 10% after the company settled a long-standing patent dispute with rival SK Hynix.

So what: The two companies have entered into a five-year patent license agreement where SK Hynix can use Rambus' memory-related patents in its semiconductor products. The agreement includes quarterly payments of $12 million to Rambus related to DRAM products.

Now what: Rambus and SK Hynix have now settled all outstanding patent claims. Rambus CEO Ron Black called it a "milestone agreement" that allows the two companies to collaborate and focus on the future. The SK Hynix settlement is the latest in a string of other licensing deals that Rambus has scored with other chip makers, although it lost a major suit to Micron last year.

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The article Why Rambus Shares Popped originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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