Hynix Semiconductor and SanDisk Corporation have announced a patent cross-licensing deal covering the flash memory components in order to avoid a messy intellectual property fight.  The agreement outlines a joint venture between the two companies to manufacture memory components and sell NAND memory system solutions. The joint venture will involve equal capital investments by both companies in dedicated production capacity in South Korea.

The two companies first came together from a technology cooperation involving x4 memory technology, a technique that allows each memory cell to hold four bits of information memory chip, helping keep production costs low. Hynix had been working on x4 with M-Systems, a company that was acquired by SanDisk for $1.5 billion in November 2006. Specific terms of the agreement are confidential.

O.C. Kwon, Senior Vice President of Hynix Semiconductor Inc., said in a press release, "We are very pleased to successfully conclude negotiations with SanDisk in a way that will benefit the customers and shareholders of both companies. With the patent cross license behind us, we are able to put aside distractions and turn our attention to a very promising relationship in the development of x4 technology. We look forward to building on this relationship to our companies' mutual benefit."

In related news, Hynix and Toshiba have ended their legal feud over NAND flash and DRAM memory infringement for more than two years by signing agreements to share patents and technology. As part of the agreement, Hynix will pay Toshiba royalties for use of the Japanese electronic company’s patents, while Toshiba will  purchase certain products from the South Korean memory maker.

"The agreements settle all pending patent-related litigation between the companies in the U.S. and Japan, including that before the U.S. International Trade Commission," the two companies said in a joint statement.