Intel and Transmeta settled a patent infringement lawsuit for $250 million:
Under the terms of the agreement Transmeta will receive a one-time payment that equals its revenue for the recent three years and consequently will obtain the amount of cash that equals its revenue throughout the whole history of the company. Intel will receive rights to use technologies by Transmeta.
The agreement will grant Intel a perpetual non-exclusive license to all Transmeta patents and patent applications, including any patent rights later acquired by Transmeta, now existing or as may be filed during the next ten years. Transmeta will also transfer technology and grant to Intel a non-exclusive license to Transmeta’s LongRun and LongRun2 technologies and future improvements. Under the agreement, Intel will covenant not to sue Transmeta for the development and licensing to third parties of Transmeta’s LongRun and LongRun2 technologies.
The agreement provides for Intel to make an initial $150 million payment to Transmeta as well as to pay Transmeta an annual license fee of $20 million for each of the next five years. In total, Transmeta will receive $250 million from Intel, an unprecedented sum for the company, which combined revenue since 1999 was $249.133 million. In the last three years total earnings of Transmeta were $150.725 million.