Samsung patent spat cash saves Spansion

STAFF AT CALIFORNIAN FLASH MEMORY OUTFIT SPANSION will be breathing a huge sigh of relief this morning following the announcement that the beleaguered company will receive a $70 million settlement from Korean electronics giant Samsung.

Spansion, which recently filed for Chapter 11 bankruptcy, will have to get approval from financial authorities before the settlement is finalised, but the two companies are expected to kiss and make up by exchanging rights in their patent portfolios in the form of licenses and covenants, the details of which are subject to a confidential agreement.

The patent suit involved the use of processes owned by Spansion regarding floating gate technology used in 90 per cent of flash memory modules. Spansion attempted to prevent the sale of any device containing Samsung memory in the USA.

A spokespan said, "The agreement strengthens our cash position to help Spansion emerge from the Chapter 11 process a stronger and more focused company." µ