In the case, Intergraph claimed infringement of its Clipper technology patents in Intel chips. The settlement of the case, which was taking place in an Alabama court, was reached during the course of court-ordered mediation between the companies in another pending patent dispute in a Texas court.
The settlement agreement, announced yesterday, provides that Intel will pay $300 million to Intergraph. The lawsuit pending in Alabama will be dismissed and the companies have signed a cross-license agreement. The final part of the deal provides that Intergraph will sell certain unrelated patents to Intel.
The Texas case, which has not been settled, will go to trial on 1st July. In it, Intergraph alleges infringement by Intel of patents for parallel instruction computing (PIC). PIC technology is at the heart of Intel’s Itanium chip.
Both companies have agreed on the level of damages to be awarded in the Texas case, depending on the outcome. If Intel prevails, the damages will be zero. If Intergraph prevails, the damages will be $150 million.