Intel is to pay Transmeta $250m to settle a patent infringement lawsuit between both companies. Under the agreement, Intel will pay Transmeta $150m initially, and $20m in each of the next five years. In exchange, Intel will be granted a right to licence Transmeta patents for use in future products. It will also end pending patent litigation between both companies and release all claims between them.
Transmeta sued Intel in October last year, claiming some Intel processors violated 10 Transmeta patents covering processor design and power-efficiency techniques. Nine patents covered basic processor functions lsuch as scheduling and addressing instructions on a chip, and the 10th related to Transmeta’s LongRun technology, used to adjust a processor's voltage based on its workload.
In January, Intel countersued Transmeta for infringing seven patents, also alleging Transmeta withheld and mischaracterised information about other patents and technologies in its patent applications.
Under the agreement, Intel will be in a binding agreement not to sue Transmeta for the development and licensing of LongRun technology to third parties, Transmeta said in a statement.
Transmeta, founded in 1995, tried to break Intel's dominance in the notebook PC market with its Crusoe processor, which allowed PCs to run longer by reducing power consumption. Consumers responded poorly to the processor, leading to Transmeta changing its business model to licensing its technology.