DOW JONES NEWSWIRES
Samsung Electronics Co. (005930.SE) agreed to pay Spansion Inc.
(SPSN) $70 million to settle patent lawsuits, and the two companies
exchanged patent rights in licenses and covenants.
"This agreement is a significant milestone in the company's
strategy to further develop its (intellectual property) business,"
said Spansion Chief Executive John Kispert, adding that the
agreement strengthens Spansion's cash position.
Memory-chip maker Spansion filed for bankruptcy protection last
month, saying changed market conditions made it unable to service
its debt load. The settlement requires approval of the bankruptcy
court.
Before the bankruptcy filing, Spansion, formerly a joint venture
of Advanced Micro Devices Inc. (AMD) and Fujitsu Ltd. (FJTSY), said
it would reduce its global work force of about 8,900 by 3,000.
Memory-chip makers have been struggling with low prices because of
oversupply for about two years.
Spansion sued Samsung Electronics in November, seeking to block
U.S. imports of some hit products, including iPods and BlackBerrys.
It accused the company of violating its patents covering
technologies used in flash memory, a variety of chip that is a
mainstay in portable devices such as music players, digital cameras
and computers.
Spansion's shares soared 63% to 23 cents in after-hours trading
from the Tuesday close of 14 cents. The stock price has fallen 29%
in 2009.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com