Samsung and SanDisk reach agreement on flash chip patents

Samsung and SanDisk have announced that they have renewed a cross-license agreement for their semiconductor patent portfolios and have extended a deal wherein Samsung will continue to guarantee a supply of flash memory production to SanDisk. The new agreements will last seven years from August 14.

While the agreement gives rights to use each other's patents broadly in cell flash memory and flash storage systems, it does not include patent claims specific to 3D memory.

Reuters is reporting that SanDisk agreed to halve the royalty rate paid by Samsung that was set in the previous agreement.

According to the publication, negotiations were "quite intense," and the possibility of litigation regarding patent infringements lingered if a deal was not reached. Samsung currently pays $350 million per year in royalties to SanDisk.