Gateway has settled the patent case brought against it by Intergraph, paying the company $10 million with royalty payments of $1.25 on selected PCs sold until 2009.
For the software and service company, its persistence has paid off, having already taken $225 million off Intel at the end of March.
You'd think that with such a vast increase in the company's revenue (it makes around $500m a year), the CEO would be over the moon. But Halsey Wise likes to take things calmly: "We are pleased to have resolved this component of our OEM patent litigation. We are happy with the terms of the Gateway settlement, particularly the future royalty component," he said in a statement.
His PR people have got a little more excited though, producing no less than five press releases today to benefit from its brief time in the spotlight.
PCs sold under the Gateway and eMachines brands now have a license for Intergraph's Clipper memory management technology. Intergraph used to manufacture graphics workstations and processors, and sued a number of PC and processor companies alleging that their chips infringe on a patent Intergraph holds for the cache memory design of its Clipper processors sold in the 1980s.
Intel and AMD settled its lawsuits and have taken licenses for the Clipper technology. Although Intel's settlement contained a provision under which Intergraph resolved claims against Dell and Texas Instruments. With Gateway now signed up, only HP remains on the list.
Gateway announced earlier this week that it expanded a reserve account for a patent-related matter in the first quarter. This was in preparation for the Intergraph settlement, a Gateway spokesman confirmed. The expanded account widened Gateway's first-quarter net loss by $6 million.
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