Transmeta Corp. reaches agreement to settle with Intel
Transmeta Corp. (Nasdaq: TMTA) said today it reached an agreement with Intel to settle all claims between the two companies and license Transmeta’s patent portfolio to Intel for use in current and future Intel products.
The settlement dismisses pending patent litigation between Transmeta and Intel for a mutual general release of all claims of any type between the two. The developer and licenser of computing, microprocessor and semiconductor technologies sued Intel alleging that Intel infringed on Transmeta's patents by making and selling a variety of microprocessor products, including Intel's Pentium III, Pentium 4, Pentium M, Core and Core 2 product lines.
The two companies also struck a deal that gives Intel a perpetual non-exclusive license to all Transmeta patents and patent applications. The license includes any patent rights later acquired by Transmeta, or that may be filed during the next 10 years.
Transmeta will also transfer technology and grant Intel a non-exclusive license to its LongRun and LongRun2 technologies as well as future improvements.
Additionally, under the agreement, Intel has agreed not to sue Transmeta for the development and licensing to third parties of Transmeta’s LongRun and LongRun2 technologies.
Intel will make an initial $150 million payment to Transmeta, as well as pay Transmeta an annual license fee of $20 million for each year of the next five years.
Shares of Transmeta (TMTA) rocketed 219.62%, or $9.18, to $13.36 at 10:56 a.m. ET. Shares of Transmeta have been trading in the range of $4.10 to $26 for the past 52 weeks.
