Intel Pays Transmeta $250M To Settle Patent Dust-Up

October 24, 2007 11:06 a.m. EST

Santa Clara, CA (AHN) - Intel will pay rival Transmeta $250 million to settle a 2006 patent infringement dispute. As part of the agreement, the chip giant pays Transmeta a $150 million lump sum, then $20 million annually for the next five years.

In turn, Transmeta agreed to give Intel licenses to all its patents, including those the company acquires over the next decade. Intel also gains nonexclusive licenses for Transmeta's LongRun and LongRun2 technology, according to the Wall Street Journal.

Transmeta had sued Intel, claiming the chipmaker infringed 1o patents dealing with power-savings. Intel retailiated in January 2007, charging Transmeta infringed seven patents.