Intel, Via Settle All Patent Cases

Intel and Via Technologies have reached a settlement that resolves all pending patent infringement lawsuits between the companies relating to chip sets and microprocessors, the companies announced Monday.

The chip makers had been fighting 11 legal battles in five countries that involved 27 patents. As part of the settlement they will enter into a ten-year patent cross-license agreement covering each company's products. They are dismissing their pending legal claims in all jurisdictions, according to a joint statement. Specific financial details of the settlement were not disclosed.

"The good news is that it frees Intel and Via to focus on technology issues and stop investing substantial amounts in litigation," said Nathan Brookwood, principal analyst at Insight64. "Litigation is a bigger drain on Via than Intel."

The settlement will also foster competition in the industry by allowing Via to participate in the core processor market, he said.

Though the settlement will make the chip set and microprocessor markets more competitive, it will have very little effect on individual end users, he said. "Intel sells chip sets for roughly $20, Via for $10 to $15, so cost savings on an individual basis really is small."

Suit History

Intel filed a patent infringement lawsuit against Via in September 2001 in the U.S. District Court, District of Delaware. Intel alleged that the Taiwanese company's P4X266 and P4M266 chip sets violate five patents related to chip sets for Intel's Pentium 4 processor. Intel sought injunctive relief and unspecified damages.

Via and its subsidiary company Centaur Technology countersued Intel a few days later, alleging its Pentium 4 chips infringed a patent jointly held by Via and Centaur. Via sought monetary damages and asked the court to block the sale of Intel's Pentium 4 chips.

Use Granted

As part of Monday's settlement, Intel will grant Via a license to sell microprocessors that are compatible with the x86 instruction set at the heart of Intel's chips. The license does not include those that are pin-compatible or bus-compatible with Intel microprocessors.

In addition, Intel agreed that for three years it will not assert its patents on Via's pin-compatible or bus-compatible microprocessors. It also granted Via a four-year license to design and sell chip sets that are compatible with Intel's microprocessor bus. For an additional year, Intel will not assert its patents against Via, its customers, or its distributors over such chip sets.

The agreement requires Via to pay royalties to Intel relating to some products, the companies said. The settlement agreement does not apply to S3 Graphics, a company partly owned by Via.