InterDigital Inc. said in a Securities and Exchange filing Wednesday that Samsung Electronics Co. Ltd. has agreed to pay it $400 million to settle their long-running patent licensing disputes.

The King of Prussia, Pa., developer of wireless communications technology said the agreement takes the place of a binding term sheet it and Samsung signed last November and provides for the termination of their 1996 patent license agreement.

The agreement resolves the outstanding arbitration disputes between InterDigital (NASDAQ:IDCC) and Samsung involving Samsung’s sale of so-called second-generation, or 2G, wireless communications products, as well as the patent disputes between InterDigital and Samsung over Samsung’s sales of 3G products.

InterDigital said it and Samsung will move to end all litigation and arbitration proceedings between them subject to the receipt of Samsung’s first payment, which is due this quarter. Samsung has agreed to pay the settlement in four equal installments over 18 months.

Under the agreement, InterDigital will grant Samsung a royalty-bearing license covering Samsung’s sale of 3G products through 2012 and a license covering Samsung’s sale of some 2G products that will become paid up in 2010.

InterDigital said it anticipates recognizing revenue associated with the agreement from Wednesday through Dec. 31, 2012, when the agreement expires.