Intel agrees to payment on patents
The New York Times
1 April 2004
SAN FRANCISCO:
Intel has agreed to pay $225 million to Intergraph to settle remaining claims that its Itanium chip infringed on Intergraph's patents. The settlement, announced Tuesday, brings the total amount that Intel has paid or will pay to Intergraph, a graphics software and systems company based in Huntsville, Alabama, to $675 million.
We're pleased with the outcome, Halsey Wise, Intergraph's president and chief executive, said by telephone. It allows us to focus on our ongoing intellectual property litigation.
Shares of Intergraph rose $3.28 on Tuesday, to $23.67, while Intel fell 26 cents, to $27.43
As part of the deal, Intergraph agreed to drop a 2002 lawsuit against Dell, which uses Intel's chips in its personal computers, and to give Dell a license to all of Intergraph's patents. Intel and Dell have an indemnity agreement that protects Dell from patent suits filed against Intel. Intel and Dell dispute the terms, but the two companies have decided to pursue an out-of-court solution.
Intergraph said it would continue to pursue its patent infringement charges against Hewlett-Packard and Gateway, which use Intel chips in their computers. Intergraph says its patents cover computer systems and components.
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