Chip designer ARM is leading a consortium which is to acquire the patent portfolio of MIPS Technologies, the US semiconductor design company, in order to reduce the risk of expensive patent infringement suits in the chip design industry.
The MIPS patent portfolio includes 580 patents and patent applications covering microprocessor design, system-on-chip design and other related technology fields. The consortium, which comprises major technology companies affiliated with Allied Security Trust, the member-based patent holding company, will pay $350m in cash to acquire rights to the portfolio, of which ARM will contribute $167.5m.
"ARM is a leading participant in this consortium which presents an opportunity for companies to neutralise any potential infringement risk from these patents in the further development of advanced embedded technology," said Warren East, Chief Executive Officer of ARM.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Litigation is expensive and time-consuming and, in this case, a collective approach with other major industry players was the best way to remove that risk," East added.
