Shares at Tessera Technologies shot up by 15 percent as it increased its forecast for the Q2 sales, after a technology dispute with Motorola Inc. was settled with a licensing agreement.

Tessera Technologies said Tuesday that this agreement will resolve all outstanding litigation between the companies.

Consequently, the company’s revenue bettered, making it hike its second-quarter revenue forecast to a range of $59 million to $61 million from the previously anticipated $46 million to $49 million.

While overturning a previous judgment, the U.S. International Trade Commission, ruled in favor of Tessera in a case that involved patents associated with packaging computer chips.

As a part of the worldwide license, Motorola will pay royalties on shipments of certain electronic products- including cell phones, set-top boxes and radio equipment - that include chips that use Tessera''s patented TCC technology.

The judgment concluded that defendants, including Motorola, violated Tessera's patents related to how certain chips were packaged.