Transmeta Corp. and Intel Corp. have agreed to settle all patent matters in a deal that sees Intel pay an initial $150M up front and $20M each year for five years. In exchange, Intel receives a perpetual license to Transmeta’s patent portfolio (including patents acquired during the next 10 years) for use in any of Intel’s current or future products. Intel also agreed not to sue Transmeta or its licensees of Transmeta’s LonRun and LonRun2 technologies.
Transmeta’s patent suit in Delaware’s District Court asserted 10 of its patents against Intel’s popular microprocessors including Intel’s Core and Core 2 products. Intel countersued for infringement of seven Intel patents. Recently, Transmeta exited the business of selling products in favour of licensing its technology to others.
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