Netlist, Inc. has entered into a definitive agreement with Micron Technology, Inc. to settle pending legal proceedings and grant a patent license. The settlement, effective October 5, 2026, resolves all outstanding litigation between the two companies.
Under the terms of the Patent License Agreement, Micron will receive a worldwide, non-exclusive, non-transferable, and non-sublicensable license to Netlist’s entire patent portfolio. The license is valid for a five-year term. In exchange, Micron will make quarterly payments to Netlist of $30 million for each of the twenty calendar quarters from the fourth quarter of 2026 through the third quarter of 2031. This results in a total value of $600 million over the duration of the agreement.
In addition to the licensing fees, the companies executed a Securities Purchase Agreement on the same date. Under this agreement, Micron purchased 10 million shares of Netlist’s common stock for an aggregate cash purchase price of $1 million. The shares were issued in reliance on Section 4(a)(2) of the Securities Act of 1933 and are subject to a lock-up period. Twenty percent of the shares will be released from transfer restrictions on each of the first, second, third, and fourth anniversaries of the issuance, with the remaining shares released on the fifth anniversary. The closing of the stock purchase is scheduled to occur on or before October 6, 2026.
Netlist’s Chief Executive Officer, C.K. Hong, stated that the agreement validates the value of the company’s AI memory technologies and reaffirms its commitment to protecting its intellectual property.
