AMD had launched a suit against Intergraph in January, asserting that Intergraph’s Clipper system and processor patents were either invalid or not infringed by AMD’s microprocessor products.

Under yesterday’s agreement, AMD is to receive a license for Intergraph’s Clipper patents. The deal also puts systems using AMD processors in the clear.

In return, AMD will pay Intergraph $10m, plus 2% of the profits from its microprocessor sales for three years, starting from 2005, up to a maximum of $5m a year.

Intergraph has fought and won a series of suits against Intel, and Intel OEMs, covering its technology. Intel finally settled the last of its outstanding suits with Intergraph last month. It is still pursuing actions against a number of OEMs it claims infringed its Clipper patents.

This article is based on material originally published by ComputerWire