AMD, Intergraph Settle Suit

Intergraph settles all of its outstanding patent claims against Advanced Micro Devices, following a similar settlement with Intel a week earlier.

Intergraph Corp. said Monday that it had settled all of its outstanding patent claims against Advanced Micro Devices Inc., following a similar settlement with Intel Corp. last week.

According to the terms of the deal, AMD will receive a license to the "Clipper" patents held by Intergraph, which will drop all patent claims against the company. In return, AMD will pay Intergraph $10 million, as well as 2 percent of the companys profits for the next three years, subject to a cap of $5 million per year, or a total of $25 million.

Intergraph, which exited the hardware business for software and services several years ago, has begun several actions trying to receive some value from its patent portfolio, which has been the subject of legal disputes for several years. In late March, Intel settled with the company, agreeing to pay it $225 million to settle all outstanding claims.

Intergraph also has filed suit aganst PC OEMs Hewlett-Packard Co., and Gateway. Under the terms of the AMD settlement, however, Intergraph agreed to indemnify AMDs customers, which include Gateway and HP. Dell Inc. previously settled with Intergraph.

Intergraph first sued Intel in 1997 for allegedly illegally obtaining technology Intergraph developed for its Clipper processor and integrating it into Intels Pentium architecture. In 2002, Intel, of Santa Clara, Calif., agreed to pay Intergraph $300 million and to buy selected patents from Intergraph and license other technologies from the company.