SGI, Real 3D end hostilities

Marketing, development and patent licensing deal ends three-year lawsuit

Silicon Graphics has taken a ten per cent stake in graphics chip developer Real 3D, and the two have agreed to undertake cooperative marketing and development programmes. The moves come at the end of a three-year legal battle. The deal sets up Real 3D as preferred supplier for future SGI workstation products, such as Create 3D and RealScan 3D. In turn, SGI will help market Real 3D's content creation products. The two companies have also signed a royalty-free graphics patent cross-licence covering current technology and possibly future developments too. The patent agreement ends the two companies' long running dispute over patent infringement, initiated by Real 3D's majority stakeholder and technology licensee Lockheed-Martin. The company also licenses its technology to Sega and Intel. Intel is Real 3D's third major stakeholder, owning 20 per cent of the company. SGI's stake is estimated to be worth $20-25 million. Analysts welcomed the deal, suggesting Real 3D's experience with Windows NT would benefit SGI's own moves toward that platform. ® Click for more stories

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