Thursday, April 8, 2004
Ramtron International Corp. and National Semiconductor Corp. are settling their long-standing patent interference dispute with an agreement that could cost Ramtron up to $2.5 million.
As consideration for the assigned patent applications and cross license provisions, Ramtron will pay National 10 annual payments of $250,000. Ramtron and National have agreed to cross license any and all future patents that may mature from the four applications at no additional cost to either company, it was said.
The dispute and settlement pertain only to certain of Ramtron's patent coverage in the United States. Ramtron claims to already owns undisputed intellectual property rights covering the same invention in other major markets around the world including Europe and Japan.
The original interference, declared in 1991, related to one of Ramtron's issued United States patents that cover a basic ferroelectric memory cell design invention. The patent dispute involved five patent applications by National, each with a corresponding count of interference against claims contained in a single Ramtron ferroelectric random access memory (FRAM) patent.
Under the terms of the settlement, National will assign Ramtron two of its current patent applications related and retain two of the remaining applications. Ramtron said it intends to apply for patents with the newly assigned applications.
The fifth remaining count of interference will be sent to a Special Master for a final ruling, Ramton said, adding that in light of the negotiated settlement on the four other counts, it believes it would not be materially affected if the judgment is adverse to Ramtron.
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