Rambus, Broadcom Ink Patent Licensing Agreement

Paul Lilly

Shares of Rambus stock rallied on Thursday after the technology licensing company announced it signed a patent licensing deal with Broadcom, which manufacturers networking and communication integrated circuits for data, voice, and video applications. The agreement absolves Broadcom from any and all previous patent claims made by Rambus.

According to Reuters , Rambus shares jumped 8 percent to $7.92 in extended trading after the announcement was made. Rambus stock is now trading at $8.48 and is up 15.84 percent. That's good news for Rambus, which dropped nearly 60 percent in value since losing a $4 billion antitrust suit against Micron last month.

Broadcom, a fabless company, is one of the top 10 semiconductors in the world, according to market research firm Gartner. Under terms of the agreement, Broadcom will make royalty payments to Rambus for applicable products for the next five years.

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