Broadcom to pay out $60M in Intel lawsuit settlement

Intel and Broadcom have agreed to put their legal differences aside, but the settlement of the lawsuit filed by Intel three years ago will cost Broadcom $60 million this year, the companies announced Friday.

In addition to the cash settlement, to be paid out in the third and fourth quarters of this year, Broadcom and Intel have entered into a cross-licensing agreement that covers nearly all of the patents held by either company through Aug. 7, 2008, they said in a release.

The agreement gives both Broadcom and Intel “design freedom” to bring products to market without having to worry about patent claims, said Peter Andrew, senior director of investor relations at Broadcom.

An Intel representative was not immediately available for comment.

The two companies have been involved in numerous patent lawsuits regarding technologies such as video compression, networking chips, and chipsets over the last three years. Friday’s agreement dismisses all current claims with prejudice, which means they can’t be brought up again in the future.

Broadcom, based in Irvine, Calif., will take a one-time charge for the payment when it reports quarterly earnings results next week, it said.