LONDON – RealNetworks Inc. has announced that is has agreed to sell patents that protect a forthcoming generation of video codec software, together with the software, to Intel Corp. for $120 million. Under terms of the sale, RealNetworks retains some rights to continue to use the patents in current and future products.
In addition the two companies have signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products.
"Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets," said Thomas Nielsen, CEO of RealNetworks (Seattle, Wash.), in a statement.
RealNetworks, which offers software and services that include RealPlayer streaming media platform and GamesHouse online gaming platform, is selling 190 patents and 170 patent applications.
"The acquisition of these foundational media patents, additional patents and video codec software expands Intel's diverse and extensive portfolio of intellectual property," said Renee James, senior vice president and general manager of the Software and Services Group at Intel (Santa Clara, Calif.), in the same statement. "We believe this agreement enhances our ability to continue to offer richer experiences and innovative solutions to end users across a wide spectrum of devices, including through Ultrabook devices, smartphones and digital media."
"We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets," said Nielsen.
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