Netlist, Inc. (OTCQB: NLST) and Micron Technology, Inc. have entered into patent license and settlement agreements, according to a press release from Netlist.

Under the terms of the agreements, all pending legal proceedings between the two companies will be settled and mutually released. Micron will receive a five-year license to Netlist's patent portfolio, which includes patents covering server DIMMs and High Bandwidth Memory technologies.

Micron will pay Netlist $30 million per quarter beginning in the fourth quarter of 2026 through the third quarter of 2031, totaling $600 million over the term of the license.

"The agreement with Micron further validates the value of our AI memory technologies," said C.K. Hong, Netlist's Chief Executive Officer. "We remain committed to protecting our IP while continuing to invest in the development of next-generation products."

Netlist filed a Current Report on Form 8-K with the SEC concurrently with the announcement.