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How Will WDC’s Cross-Licensing Agreement with Samsung Benefit It?

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Companies renew cross-licensing agreement

At Western Digital’s (WDC) investor day event, the company announced the signing of a definitive cross-licensing agreement with semiconductor and technology leader Samsung Electronics (SSNLF). The two companies renewed their agreement, which had expired on August 14, 2016. The current agreement is valid until December 31, 2024.

According to the cross-licensing agreement, both companies will gain access to each other’s patents, primarily in the flash storage systems and multilevel flash memory segments. Samsung signed a similar agreement with SanDisk in 1997, and it was renewed twice. Western Digital acquired SanDisk in May 2016.

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SanDisk has an enviable storage portfolio

When Western Digital acquired SanDisk, it said that the move would expand its portfolio of storage products, allowing it to gain share in the global storage market. Western Digital’s storage portfolio now includes solutions in the data center, client device, and client solutions segments. The combined company will be able to capitalize on the enterprise storage products market. This market is expected to reach $76 billion by 2017, according to StorageNewsletter.

According to a press release by Western Digital, “This agreement allows Western Digital to continue to realize the value of the SanDisk acquisition and extends the company’s mutually beneficial relationship with Samsung.”

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