Gateway Settles HP Patent Suits for $47 Mln

Gateway has agreed to pay Hewlett-Packard $47 million to settle infringement suits and cross-license each others patents for seven years.

Computer maker Gateway has agreed to pay Hewlett-Packardtotal of $47 million to settle patent infringement claims, and arrange for the two companies to cross-license each other’s patent portfolios for seven years.

Gateway will pay $25 million within a week of the agreement being finalized, with the other $22 million to be paid one year later.

According to Gateway, $16.7 million of the payment is to resolve patent dispute involving Gateway PCs manufactured from 1999 to the present. Gateway admits to no fault or wrongdoing.

HP sued Gateway and eMachines in 2004 and 2005