Intergraph and Gateway kiss and make up

Patent suit settled out of court

Intergraph has ended its legal action against computer maker Gateway. The case concerned patents for Intergraph's memory management technology - called Clipper - which it claimed Gateway had infringed.

Under the terms of the agreement, Gateway will pay Intergraph $5m within ten days and two payments of $2.5m in July and October. It has also agreed to make future royalty payments of $1.25 per unit for some US sales of computer systems.

Gateway also gets a Clipper license for eMachines, which it bought in January, and agreed to pay $1.25 per unit sold in the US until February 2009.

Intergraph has recently settled patent infringement cases with AMD, Dell and Intel. It is still pursuing HP - the two are due back in court in August.

Halsey Wise, CEO and president of Intergraph, said: "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."®

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