HP announced today that it has settled all ongoing patent litigation with Intergraph Corporation and the companies have entered into a patent cross-license agreement in a deal that resolves all legal claims between the two companies.
Under the terms of the agreement, HP will pay Intergraph $141 million. HP expects this settlement to reduce earnings by approximately $0.03 for the first quarter of fiscal year 2005.
HP and Intergraph have been in litigation against each other since 2002, in both US federal court and in the European Union.
According to the terms of the cross-license agreement, HP has been granted a license to all Intergraph patents for all fields of use. Intergraph has also been granted a license to all HP patents in specific fields covered by Intergraph’s current product categories.
Intergraph’s intellectual property protection and enforcement efforts have produced approximately $860 million of pre-tax income since 2002.
Intergraph announced related patent settlements with Dell, Intel, Gateway and AMD in 2004.