Technology company BrainChip (ASX:BRN) said Sweden-based microprocessors provider Frontgrade Gaisler licensed its Akida 1.0 Neuromorphic AI intellectual property for incorporation into its space-grade, system-on-chip product for hardware artificial intelligence acceleration across multiple product generations, according to a Monday filing with the Australian bourse.

Under the license agreement, the company is entitled to a 10% royalty on the net sale price of Frontgrade's first licensed product in exchange for providing Akida 1.0 IP, which includes 100 hours of integration support and 24 months of software maintenance, the filing said.

After 24 months, Frontgrade can purchase additional software maintenance for AU$125,000 per year, and obtain an additional Akida 1.0 IP license for one more licensed product for a fee of 150,000 euros or a royalty of 15% of the net sale price of the second licensed product, according to the filing.

BrainChip shares rose nearly 10% in midday trade Monday.