By Tess Stynes
Broadcom Corp. (BRCM) will get $58 million in fees and Emulex Corp. (ELX) will receive licenses for certain Broadcom patents in a partial settlement of litigation between the two companies.
Emulex, a networking and storage company, will receive licenses to certain patents for use in fibre channel applications. The fields of use are partly related to Emulex's XE201 Lancer chips. The company also agreed to provide certain rights to Broadcom protecting the company from Emulex patent assertions.
Broadcom--a provider of chips for set-top boxes, networking and smartphones--will dismiss certain patent infringement claims against Emulex.
Other litigation between the companies related to Broadcom's patents weren't dismissed. Other terms of the agreement are confidential and weren't disclosed.
Broadcom in March said a federal court granted a permanent injunction to halt U.S. sales of some of Emulex's products that earlier were found to infringe on two Broadcom patents. Broadcom in March also said that Emulex products affected by the injunction included the BladeEngine2 and BladeEngine3 Ethernet controllers and Lancer chips used in some adapter products. The ban also covered some fibre channel switch products.
Emulex shares were down four cents at $7.20 in after-hours trading. Broadcom shares were flat at $33.69.
Write to Tess Stynes at Tess.Stynes@dowjones.com