Intel is to buy “a significant number” of patents (approximately 190 patents and 170 patent applications) and video codec software from RealNetworks for a purchase price of $120 million. Under the terms of the deal, RealNetworks says it retains certain rights to continue to use the patents in current and future products.
Says RealNetworks president and CEO Thomas Nielsen:
“Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets. It represents an extraordinary opportunity for us to generate additional capital to boost investments in new businesses and markets while still protecting our existing business.”
In addition to the sale of the patents and software, RealNetworks and Intel agreed to collaborate on future support and development of the video codec software and ‘related products’.
Intel is best known for producing the microprocessors found in many personal computers. The company also makes a range of other hardware including network cards, motherboards, and graphics chips. Intel created the first commercial microprocessor chip in 1971, but it was not until the success of the personal computer that microprocessors became their primary business. In the 1980’s they were an early developer of SRAM and DRAM memory chip, and during the 1990s they invested heavily in new microprocessor...
RealNetworks delivers digital entertainment services to consumers via PC, portable music player, home entertainment system or mobile phone. Real created the streaming media category in 1995. Its products and services include: RealPlayer, the first mainstream media player to enable one-click downloading and recording of Internet video; the Rhapsody digital music service, which delivers more than 1 billion songs per year; RealArcade, one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such...
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