Terms of the settlement remain confidential, but both sides said they were pleased with the outcome. Intel filed a suit in November of 1997 alleging that SST infringed four patents covering flash memory circuits and memory cell structure.
For its part, SST alleged that Intel, the world's largest chip maker, only sued SST after the two companies failed to negotiate a cross licensing agreement.
Last August, a federal judge in Delaware dismissed SST's suit, saying there was no legal basis for the suit to be heard in that jurisdiction. Settlement came after the parties entered into neutral mediation, both companies said.
Intel's efforts to gain valuable cross licenses from smaller partners was the cornerstone of antitrust charges filed last year by the Federal Trade Commission. Attorneys for Intel and the government settled that case in February.
SST is based in Sunnyvale, California and markets low-cost flash memory products.