Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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

Interested in more info on Rambus? Add it to your watchlist by clicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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