HP, INTERGRAPH SETTLE - AT A PRICE

The Register reports that Palo Alto-based hardware manufacturer Hewlett-Packard Co. (HP) has agreed to pay $141 million (108.5 million euro) to settle its patent disputes with software maker Intergraph Corp. of Huntsville, Alabama. The companies issued separate statements to the effect that (i) they will immediately dismiss, withdraw or terminate all pending lawsuits; (ii) while reserving the right to reinstate them; (iii) HP gets licences to all Intergraph patents while (iv) Intergraph is licensed to use all HP patents in fields covered by its current products.

Intergraph sued in 2002 claiming that Hewlett-Packard, Dell Inc. and Gateway Inc. infringed patents related to its systems using Intel Corp. chips. Related settlements were reached last year with Intel, Dell and Gateway. Palo Alto-based Hewlett-Packard had been in litigation with Intergraph in both U.S. federal court and in the European Union. Intergraph said it would record about $11 million in legal expenses for the first quarter of 2005 to offset the settlement. Said Intergraph CEO and President Halsey Wise:

"We believe that the settlement with HP is in the best interest of our shareholders, and we are pleased to have received a license to HP's extensive patent portfolio for our fields of business".

Intergraph, which has more than 3,000 employees in 60 countries, specialises in graphics software to make maps, build and operate factories and ships, dispatch emergency service and manage infrastructure.

Invent: can be a less attractive commercial alternative to "infringe"

It seems to the IPKat that one of the best ways for a company to make money is to ensure that only the richest and moast successful companies infringe its patents.