Intergraph, Gateway settle patent issue

Intergraph, Gateway settle patent issue

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Intergraph Corporation, the provider of software and services for the management and visual representation of complex information, announced that the Company has resolved its patent infringement claims against Gateway, Inc., with regard to its Clipper patents. Under the terms of the settlement, Gateway will pay Intergraph $5 million within 10 days of execution of the settlement agreement and an additional $2.5 million on both July 1, 2004 and October 1, 2004. In addition, Gateway will make future royalty payments to Intergraph of $1.25 per unit for certain U.S. sales of Gateway computer systems through February 2009. Under the terms of the settlement, Gateway also obtained a Clipper license for eMachines and agreed to pay royalties to Intergraph of $1.25 per unit for certain U.S. sales of eMachines computer systems through February 2009.

The settlement announced today provides a license to Gateway and eMachines for Intergraph’s Clipper family of patents and provides for the resolution of all patent litigation between Intergraph and Gateway. As was previously disclosed, Intergraph recently announced settlements of related patent litigation with Dell, Intel and AMD. Intergraph will continue to pursue the OEM case against HP, which is set for trial on August 2, 2004. The Intergraph Clipper patents relate to computer system memory management technology.