Intel Corp. is shelling out a total of $250 million after the company agreed to settle its patent dispute with Transmeta Corp. The agreement provides for Intel to make an initial $150 million payment to Transmeta as well as to pay Transmeta an annual license fee of $20 million for each of the next five years.
Bundled with the agreement are technology transfer and licence deals. The agreement will grant Intel a perpetual non-exclusive license to all Transmeta patents and patent applications, including any patent rights later acquired by Transmeta, now existing or as may be filed during the next ten years. Transmeta will also transfer technology and grant to Intel a non-exclusive license to Transmeta’s LongRun and LongRun2 technologies and future improvements. Under the agreement, Intel will covenant not to sue Transmeta for the development and licensing to third parties of Transmeta’s LongRun and LongRun2 technologies.
The agreement also provides for the parties to dismiss their pending patent litigation with prejudice and for a mutual general release of all claims of any type between the parties.
Last year, Transmeta filed a suitin the U.S. District Court for the District of Delaware stating that Intel infringed upon 10 of Transmeta’s patents on computer architecture and power efficiency technologies. Early this year, reports surfaced that Intel has countersued Transmeta and has denied Transmeta’s claim and insisted that it was Trasmeta who infringed seven Intel patents. (52RD.com) |
