Advanced Micro Devices Inc. and Intergraph Corp. on Monday said they have settled their patent-infringement disputes, with AMD agreeing to pay Intergraph a maximum of $25 million.
Under the settlement, Sunnyvale, Calif.-based, AMD agreed to pay $10 million by May 7, and 2 percent of the pre-tax operating profits of its Computation Products Group in 2005 through 2007. The annual payments have a cap of $5 million per year.
In return, AMD gets a license for Intergraph's Clipper processor patents and the right to use the technology is extended to AMD's customers. The agreement settles all patent disputes between the two companies.
The settlement stems from a "declaratory patent action" filed by AMD against Intergraph in January. In that action, AMD had asked a federal court in Northern California to declare the Clipper patents invalid or not infringed by AMD's chip products.
Intergraph, based in Huntsville, Ala., has filed several patent-infringement suits stemming from technology in its Clipper processor, which was used in Intergraph workstations. Intergraph no longer sells the high-powered computers often used in mechanical design, and is now a software and services company.
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