This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hewlett-Packard, Intergraph Settle Patent Dispute

Hewlett-Packard's (HPQ - Get Report) earnings will take a 3-cents-a-share hit in the current quarter due to the hardware giant paying $141 million to Intergraph (INGR - Get Report) to settle a patent dispute that stretches back two years.

Hewlett-Packard shares held steady at $20.10 and Intergraph shares rose 2.4% to $28.19.

The settlement marks the end of all Intergraph litigation against computer manufacturers related to its Clipper patents, which cover memory management within computer systems. Intergraph filed suit against Dell (DELL), Gateway (GTW) and H-P in late 2002 and subsequently reached a settlement with Dell and Gateway last year. Intergraph also settled a related case with Intel (INTC) last year that resulted in the chipmaker's payment of $225 million to Intergraph.

The H-P settlement was announced Friday morning. Both companies will dismiss all pending litigation, and H-P will pay Intergraph $141 million during the first quarter. The two companies will also enter into a cross-licensing agreement.

During the past two years, Intergraph has extracted $860 million in pretax income from the protection and enforcement of its intellectual property. The Huntsville, Ala.-based company used to make computer workstations based on its own chip and graphics technologies. It now specializes in software and related services in industrial and government applications.

Intergraph will log $11 million in legal expenses in the first quarter.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
HPQ $33.80 0.00%
INGR $80.38 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs