Transmeta (TMTA) soared 241% early Wednesday after the chip company scored a $150 million patent-settlement payout from Intel (INTC).

Transmeta will also get a $20 million annual patent license payment from Intel. In return, Intel agrees not to sue Transmeta for the development and licensing to third parties of Transmeta's LongRun and LongRun2 technologies.

"We are very pleased to have reached this agreement with Intel," said Les Crudele, president and CEO of Transmeta. "We believe that this arrangement will create value for Transmeta stockholders both by realizing immediate financial value for our intellectual property rights and by supporting our technology development and licensing business going forward."

Shares rose $10.11 to $14.29.

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