Intergraph Settles one suit with Intel

By Joe Francica

Intergraph and Intel settled one patent infringement suit which resulted in a payment of $300 Million to the Huntsville-based corporation, a major GIS software developer.The 1997 lawsuit claimed that Intel had violated Intergraph's patented, memory-related Clipper chip technology to manufacture its highly successful Pentium processors.Intergraph will retain the patents which could lead to future cross-licensing agreements.

Intergraph chairman and CEO Jim Taylor stated, "Intergraph has been building its portfolio of intellectual property for 30 years.We believe that this settlement demonstrates the validity and value of our patents."

On May 1, Intergraph will receive the payment and Intel will take a first quarter charge of approximately one-half the amount.Intergraph had sought $2.5 Billion in damages.

Intergraph will not receive any royalties from sales of Pentium, estimated to be over $100 Billion, which had also been sought.However, Intergraph will go to trial in July over another patent infringement suit claiming that its parallel computing patents were used in the design of Intel's Itanium chips.

Intergraph (NASDAQ: INGR) finished the Monday trading session down nearly 11%.Trading had been stopped earlier in the day pending the announcement of the settlement.Intel (NASDAQ: INTC) was down 1%. Read the press release.

[Sources: Intergraph, The Huntsville Times, Birmingham Business Journal]

Published Tuesday, April 16th, 2002

Written by Joe Francica

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