Netlist, Inc. (NLST) stock closed nearly 18% higher on Tuesday after the company reached a patent license and settlement agreement with Micron Technology, Inc. (MU), resolving their long-running intellectual property dispute.

Micron stock, meanwhile, traded lower in Wednesday premarket trading.

Micron to Pay Netlist $600 Million

Netlist said the companies agreed to settle and mutually release all pending legal proceedings between them.

Micron will receive a five-year license to Netlist's worldwide patent portfolio. The license includes patents covering server DIMMs and high-bandwidth memory technologies.

Under the agreement, Micron will pay Netlist $30 million per quarter from the fourth quarter of 2026 through the third quarter of 2031. The payments will total $600 million.

Netlist's accompanying SEC filing also disclosed that Micron purchased 10 million Netlist shares for $1 million. Transfer restrictions on those shares will lift in stages over five years.

Patent Fight Dates Back to 2021

Netlist's patent battle with Micron dates to April 2021, when it filed two infringement lawsuits in the Western District of Texas. The dispute later expanded to additional patents and proceedings.

In May 2024, a federal jury awarded Netlist $445 million after finding that Micron infringed two asserted patents. The district court denied Micron's post-trial challenges to the verdict in June 2025. Micron later appealed the decision.

Netlist further escalated the dispute in August and September 2026. The company filed International Trade Commission actions involving Micron memory products, including DDR5 and high-bandwidth memory technologies.

Micron Deal Follows Samsung Agreement

The Micron settlement follows another major patent agreement for Netlist.

In August, Netlist entered a five-year strategic alliance with Samsung Electronics Co. (SSNLF). The agreement covers patent cross-licensing, memory supply and technology cooperation.

Samsung agreed to an upfront patent license payment equivalent to about $200 million net to Netlist. It also agreed to quarterly license fees of up to about $27.5 million for 20 calendar quarters through the second quarter of 2031.

Netlist also secured the right to purchase up to $300 million of DRAM and NAND products annually from Samsung. That represents as much as $1.5 billion over five years.

The companies also agreed to settle and mutually release all pending legal actions. Samsung purchased 10 million Netlist shares for $1 million.

Stock Price Activity: Netlist shares closed 17.88% higher at $6.66 on Tuesday, up $1.01 for the session. Micron shares fell 0.98% to $1,035.28 in Wednesday premarket trading, according to market data.