SST reaches settlement with Winbond

A settlement in Silicon Storage Technology (Sunnyvale, California) lawsuit with Winbond Electronics of Taiwan has finally been reached. The original suit was filed in the U.S. District Court in San Jose, Calif. in July 1998 pursuant to the termination of its SuperFlash technology licensing agreement with Winbond. The settlement agreement also contains binding terms relating to a new license agreement that both parties will enter into, which upon execution will be deemed effective as of October 1, 2000.

As part of the settlement, Winbond agrees to a consent judgment and does not contest the validity and appropriateness of SST's termination of the licensing agreement in June 1998. Winbond will also pay past due and ongoing royalties.
Under the new license, Winbond is permitted to pursue the fast growing embedded flash market but is constrained by certain technology limitations and volume reduction for the memory products. SST's license to Winbond does not include SST-owned intellectual property after 1997. Winbond will not be permitted to engage third parties for wafer foundry based on SST's technology, and will be allowed to continue foundry sales for a pre-existing customer only through March 2001.

SST expects that the future royalties from this new licensing agreement will contribute significantly to SST's licensing income.

Edited by Maeve McKenna
Assistant Editor, Wireless Design Online