Texas Instruments Inc. and Samsung Electronics Co. of Korea today settled a lawsuit over patent infringement and agreed to a cross-licensing deal that will net TI more than $1 billion.
The two companies filed suit against each other in January over patents covering TI's dynamic RAM design and manufacturing processes and Samsung's semiconductor processes and packaging. The pair held the patents together and were in the process of negotiating a licensing deal when they filed the suits in federal court in Texas.
Under the terms of the new deal, all lawsuits will be dropped.
TI said in a release that it expects to gain $1 billion in royalties over the life of the agreement, which runs through 2005. Also, the company expects to net $105 million during the fourth quarter for royalties accrued during the first nine months of the year.
In the year-ago fourth quarter, Texas Instruments, which is based in Dallas, had net income of $291 million, or $1.50 a share.