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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