Transmeta settles patent suit with Intel

Oct 24 (Reuters) - Transmeta Corp (TMTA.O: Quote, Profile, Research) said it reached a settlement with Intel Corp (INTC.O: Quote, Profile, Research) on a patent lawsuit and will license the Transmeta patent portfolio to Intel for use in current and future Intel products.

Under the terms, Intel will make an initial $150 million payment and pay Transmeta an annual license fee of $20 million for each of the next five years.

The agreement will grant Intel a perpetual non-exclusive license to all Transmeta patents and patent applications, including any patent rights later acquired by Transmeta, now existing or as may be filed during the next ten years. (Reporting by Jennifer Robin Raj in Bangalore)