Industry watch Toolkit

Intel to appeal Itanium injunction

Michael Kanellos, CNET News.com CNet

Published: 31 Oct 2002 11:34 GMT

A US District Court judge issued an injunction Wednesday that bars Intel from making and selling its Itanium processor, but immediately suspended that order to allow the chip maker to appeal the ruling.

Following the order, an Intel spokesman said it would pay Intergraph $100m (£65m) for a license to Intergraph's technology if it loses its appeal in the case.

Earlier this month, the court ruled that Itanium violated patents held by Intergraph and ordered the chipmaker to pay Intergraph $150m.

The court confirmed the ruling in Wednesday's order, which allows the appeals process to begin.

Under an agreement reached between Intel and Intergraph in April, the companies stipulated that Intel would pay Intergraph $150m if it lost the case. The companies further agreed that Intel would pay Intergraph an additional $100m if it filed, but lost, an appeal. The additional $100m payment, however, would also give Intel a license to Intergraph's patents, said an Intel spokesman.

Alternatively, the two companies held out the possibility that they could negotiate a license on the patents.

If Intel wins the appeal, it won't get the $150m back, but it won't have to pay Intergraph any more fees and won't be barred from shipping Itanium chips.

For a round-up of the latest tech business coverage, see the Business News Section.

Have your say instantly, and see what others have said. Go to the ZDNet news forum.

Let the editors know what you think in the Mailroom.