After a long drawn out litigation process concerning royalty payments, Samsung and Rambus have finally reached settlement this week in which Samsung has agreed to pay Rambus $900 Million. The $900M financial settlement is based on the following conditions :-

• A one-time payment to Rambus of $200 million
• Future payments of about $25 million per quarter for the next five years
• Samsung's purchase of $200 million worth of Rambus stock

Under the agreement there will also be new technology collaboration between the two companies. Samsung has said that the settlement doesn't put a huge dint in its earnings as it had already set aside provisions and its shares were up 1.1% in midday trading in Seoul on Wednesday.