Broadcom (BRCM - Get Report) will pay Intel (INTC - Get Report) $60 million to settle litigation over chipsets used in its broadband networking technology. The two companies entered a broad licensing agreement.
The agreement settles longstanding litigation in federal court and an international trade forum between the two companies over intellectual property that also exists in Intel's processors and motherboards.
The licensing pact is extremely broad, covering "all existing products of each party" except a few proprietary products that neither believes is "material to its business as currently conducted or planned." The agreement covers patents owned or controlled by the companies that are filed before Aug. 7, 2008.
Broadcom will take a charge in its second quarter to cover the $60 million payment. Its shares were up 25 cents, or 1.2%, to $20.80 in Instinet premarket trading.