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There has been a strong debate going on for some time between Intel and Transmeta, the reasons including patent infringements. In the end, Intel has agreed to pay up $250 m to Transmeta in order to settle the conflict without having to go through the courts of the law. The payment will come as advance of $150m and $20m each year for the following five years.

The strong arguments and debates of the lawyers would have made quite a show in court, but they finally came to an agreement which would allow Intel non-exclusive access to the technologies, and it was added that it applies for “any patent rights later acquired by Transmeta, now existing or as may be filed during the next ten years”. In return, Intel promises not to sue Transmeta for developing and licensing its own technologies based on its patents. The CEO from Transmeta says: “We are very pleased to have reached this agreement with Intel. We believe that this arrangement will create value for Transmeta stockholders both by realizing immediate financial value for our intellectual property rights and by supporting our technology development and licensing business going forward.”