UPDATE 1-Mosaid sues IBM for patent infringement

* Mosaid claims IBM infringed on six of its patents

* Wants IBM to license the patents

TORONTO, July 13 (Reuters) - Patent licensing firm Mosaid Technologies Inc (MSD.TO) said on Monday it was taking IBM (IBM.N) to court for allegedly infringing on six of Mosaid's U.S. patents.

Mosaid said the long-running dispute was over IBM's making and selling of microprocessor and application specific integrated circuit (ASIC) products.

The Ottawa-based company said it was granted the patents on its fundamental dynamic random access memory (DRAM) circuit inventions.

"We are taking this action to protect our intellectual property because we have been unable to reach a reasonable settlement with IBM, despite many years of negotiation," John Lindgren, Mosaid's president and chief executive, said in a statement.

"We believe that IBM requires a license to our patents for its microprocessor and ASIC products that contain embedded DRAM. Mosaid has licensed virtually 100 percent of the global commodity DRAM industry, including signing patent license agreements covering embedded DRAM products. The value of our patents is internationally recognized."

Mosaid filed the suit in the U.S. District Court for the District of Delaware. (Reporting by John McCrank; editing by Peter Galloway)