MOSAID says the agreement also call for a series of fixed payments to cover product sales prior to the date of the agreement.
The deal is MOSAID's fifth limited term license agreement.
A MOSAID spokesperson said the terms of the deal preclude naming the company or disclosing the dollar value of the license. However, she emphasized there is no change to the company's financial guidance for FY2006.
"We are very pleased and excited to add another one of the world's largest DRAM manufacturers to the list of companies that have licensed MOSAID's patent portfolio, " Jim Skippen, senior vice-president of patent licensing and general counsel for MOSAID Technologies, said in a statement.
"The limited term license model is important because it yields a revenue stream during the entire term of the license while offering an opportunity for its renewal at the conclusion of the term. "
MOSAID has signed patent licensing deal with several large semiconductor makers including Samsung, Fujitsu, NEC, Toshiba, Hitachi, Mitsubishi Electric, Sony, Royal Philips Electronics, and Hynix Semiconductor.
The company currently has 13 semiconductor companies on notice for patent infringement and says it is in licensing discussions with several of them.
"MOSAID is committed to ensuring the long term success of its patent licensing program, " Mr. Skippen said.
"In addition to our licensing model which has the potential for renewals at the expiration of a fixed term, we are also employing a number of strategies to enhance our current patent portfolio. These strategies include analysis of our existing portfolio for new licensing opportunities, particularly with respect to our networking patents; active registration of patents resulting from the various R & D activities underway at MOSAID; and the purchase of key technologies and patents to expand the breadth of our licensing program. "
