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What: Shares of Rambus (Nasdaq: RMBS) are enjoying some nice gains today, up by 19%, after the company announced it has entered into a licensing agreement with Broadcom (Nasdaq: BRCM).

So what: The deal covers the use of Rambus innovations in a wide array of integrated circuits that Broadcom offers. It extends for a term of five years, but no other terms of the agreement were disclosed.

Now what: On top of that, the pair have settled all outstanding claims, including the resolution of past use of Rambus' patents. Rambus senior vice president Sharon Holt said, "We are committed to continuing the development of innovative technologies to help our licensees deliver great products to the market." The announcement represents some good news that follows a major legal setback Rambus faced last month in a legal battle with Micron (Nasdaq: MU).

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