NEW YORK (AP) - Transmeta Corp., which licenses microprocessor and semiconductor technologies, said Wednesday that Intel will pay to license Transmeta's patent portfolio in a patent lawsuit settlement. Shares of Transmeta soared 282 percent in premarket trading.
Through the agreement, Intel will pay Transmeta $150 million initially and pay the company a $20 million annual license fee for a perpetual, non-exclusive license to its patents and patent applications.
Santa Clara, Calif.-based Transmeta said it will also grant Intel a non-exclusive license to its LongRun and LongRun2 technologies. Intel will agree not to sue Transmeta for development and licensing to others of these technologies, Transmeta said.
In premarket trading, Transmeta shares jumped $11.82, or 282 percent, to $16.01, while Intel shares declined 50 cents to $26.30.
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