Samsung Electronics, the world’s largest producer of memory and a leading developer of mobile application processors, and Rambus, a memory technology licensing company, this week signed a new technology licensing agreement that allows the former to use patented innovations owned by the latter for ten years.
The agreement requires quarterly royalty payments to Rambus of $15 million per quarter for the first five years, with an initial payment of $22 million for the fourth quarter of 2013. Payments in the second five-year period are variable and subject to market-related factors. The agreement further provides Samsung access to Rambus’ security technologies in system devices such as smart phones, tablets, and set-top boxes. The agreement is set to terminate in 2023. Other terms and details are confidential.
The new agreement extends the existing relationship between the companies, providing Samsung with access to Rambus’ technologies for inclusion in Samsung ICs. Previously Samsung only licensed Rambus’ technologies to produce various types of dynamic random access memory. The previous contract earned Rambus about a billion of dollars.
“This new 10-year agreement symbolizes our ability to add value to Samsung through our core memory and security technologies. Extending this relationship for a longer term gives us the ability to work with the broader industry on a variety of exciting technology initiatives,” said Ron Black, president and chief executive officer at Rambus.