Cylink, RSA Data Settle Patent Dispute

Cylink Corp. and RSA Data Security Inc. said they have settled a patent dispute over their competing products, which provide security for information on the Internet. The settlement calls for Cylink to give the patent rights to cryptography it developed at Stanford University to RSA Data, a unit of Security Dynamics Technologies Inc. In exchange, Redwood City-based RSA gave Cylink a license to products used to develop security software. The settlement helped boost shares of both companies, with Cylink rising $1.625 to close at $13.625, while Security Dynamics shares rose $1.375 to close at $38.125, both on Nasdaq. Sunnyvale-based Cylink said it ended almost three years of “costly and distracting” litigation so it can focus on its encryption technology.