RealTime IT News

HP, Intergraph Settle Patent Dispute

HP will pay $141 million to Intergraph to settle a patent dispute that has been ongoing since 2002. The payment is expected to be made by January 28, 2005.

Under the terms of the settlement, HP and Intergraph will now have a patent cross-license agreement that resolves all legal claims between the two companies.

The cross-license agreement gives Intergraph a license to use the HP patents covered by specific fields in Intergraph's current product categories. HP, in turn, gets a license to all of Intergraph's patents for all fields of use.

"We are very pleased to have fully resolved all of our pending OEM patent litigation with the HP settlement," Halsey Wise, Intergraph president and CEO, said in a statement. "We believe that the settlement with HP is in the best interest of our shareholders, and we are pleased to have received a license to HP's extensive patent portfolio for our fields of business."

Wise noted that Intergraph's intellectual property protection and enforcement efforts have produced approximately $860 million of pre-tax income since 2002.

Intergraph's so-called "OEM case" involves Intergraph's Clipper System and Processor patents. Its last target was computer maker Gateway, which it settled with in May 2004 for $10 million.

At the end of March 2004, Intergraph settled its patent disputes with Dell and Intel. Intel paid Intergraph $225 million while Dell signed a comprehensive licensing agreement that includes Intergraph's patents.

Back in September 2003, Intergraph settled with Texas Instruments for a one-time lump sum of $18 million.