SanDisk and Samsung have agreed to renew the cross licensing of their semiconductor patent portfolios. Under the deal, they would get rights to each party’s patents covering cell flash memory and flash storage systems. But the agreement does not include patents specific to 3-D memory technology.
In addition, the companies also signed a flash memory supply agreement that assures SanDisk a guaranteed portion of Samsung’s flash memory production output.
The new agreements, which are valid for a term of seven years, will come into effect on August 14, 2009, when the current cross license and supply agreements expire.
Financial terms of the agreements were not disclosed. Over the life of the new license, the estimated effective rate of the fixed payments and royalties is expected to be approximately half of the effective rate in recent years under the current license.
Oh-Hyun Kwon, president of the Semiconductor Business at Samsung Electronics, said: “The renewal agreements enable Samsung and SanDisk to each focus their energies on restoring flash market growth. It is clear that these renewal agreements are aimed at strengthening the on-going business relationship between Samsung and SanDisk.”
