Hewlett-Packard to get $47 Million in Gateway patent settlement

[Bush_Eats_Beef]

Silicon Valley/San Jose Business Journal - 2:01 PM PST Wednesday
H-P to get $47M in Gateway patent settlement

http://www.bizjournals.com/sanjose/stories/2006/02/27/daily37.html?f=et79&hbx=e_du

Hewlett-Packard Corp. said on Wednesday that Gateway Inc. has agreed to pay it $47 million to settle a patent dispute. Palo Alto-based H-P (NYSE:HPQ) said it has entered into a binding term sheet with Gateway Inc. and Gateway's subsidiaries eMachines Inc. and AD Technologies LLC.

Gateway has agreed to pay H-P $25 million within seven business days following the execution of a definitive settlement agreement and cross-license agreement, and $22 million to be paid not later than one year after that date. The parties said they will also will enter into a limited patent cross-license agreement.

The settlement resolves all claims asserted in three federal court lawsuits, three International Trade Commission investigations and a state court lawsuit against eMachines.

H-P sued Gateway and eMachines in 2004 and 2005, claiming infringement of 27 patents. In counterclaims or independent actions, Gateway and AD Technologies asserted 13 patents against H-P. As a result of the settlement, each action will be dismissed.