SUNNYVALE, Calif. and SEOUL, South Korea, June 20, 2011 /PRNewswire/ -- Spansion Inc. (NYSE: CODE) and Samsung Electronics Co., Ltd today announced that they have agreed to settle all ongoing patent litigation and disputes, including their respective investigations with the US International Trade Commission. Under the terms of the agreement, Spansion and Samsung have agreed to a seven year cross license of each other's patent portfolios. As part of the overall agreement, Samsung will pay Spansion $150 million over five years with an initial payment of $25 million due in August 2011 and 20 quarterly payments of $6.25 million starting in fiscal fourth quarter of 2011. In addition, Spansion has agreed to purchase Samsung's bankruptcy claim for $30 million, which Samsung has elected to apply against the first $30 million Samsung owes Spansion. Provided that the bankruptcy court approves the claim as requested, the purchase of Samsung's bankruptcy claim will enable Spansion to retire between 1.65 million and 1.85 million shares.
Both Spansion and Samsung said they are pleased to resolve their differences and move forward.
"This agreement benefits both companies in many ways," said John Kispert, president and CEO of Spansion. "Most importantly for Spansion, it establishes a solid foundation from which to grow our licensing business, which offers licenses to our extensive patent portfolio in addition to making certain strategic technologies available for licensing to the industry."
"The real winners here are Spansion's and Samsung's customers," said Dr. Seung Ho Ahn, executive vice president and the head of Samsung Corporate Intellectual Property Center. "After many years of disruptive court time, we were able to find a way to resolve our differences and reach agreement on balanced terms."
Spansion (NYSE: CODE) is a leading provider of the Flash memory technology at the heart of the world's electronics systems, powering everything from the routers that run the internet to the highly interactive and immersive consumer and automotive electronics that are enriching people's daily lives. Spansion's broad and differentiated Flash memory product portfolio, award-winning MirrorBit charge-trapping technology, and industry leading service and support are enabling customers to achieve greater efficiency and success in their target markets. Spansion's strong product offering is backed by an equally strong IP portfolio that includes more than 2,000 patents and technology for integrating its memory technology with other technologies. For more information, visit http://www.spansion.com.
About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2010 consolidated sales of US$135.8 billion. Employing approximately 190,500 people in 206 offices across 68 countries, the company consists of eight independently operated business units: Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, Digital Imaging, Semiconductor and LCD. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, semiconductor chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements. The risks and uncertainties include the company's ability to: expand the company's licensing business; implement a licensing strategy that results in future growth and innovation; continue to design differentiated products; and obtain bankruptcy court approval for the purchase of the bankruptcy claim and retire shares in connection with this claim purchase. Additional risks and uncertainties related to the company's business are discussed in the company's Securities and Exchange Commission filings, including but not limited to the company's most recent Annual Report on Form 10-K for fiscal 2010 and Quarterly Reports on Form 10-Q. Unless otherwise required by applicable laws, the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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