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Intel to appeal Itanium injunction

A judge issues an injunction barring Intel from making and selling its Itanium processor, but immediately suspends that order to allow the chipmaker to appeal the ruling.

A U.S. District Court judge issued an injunction Wednesday that bars Intel from making and selling its Itanium processor, but immediately suspended that order to allow the chipmaker to appeal the ruling.

After the order, an Intel representative said the company would pay Intergraph $100 million for a license to Intergraph's technology if it loses its appeal in the case.

Earlier this month, the court ruled that Itanium violated patents held by Intergraph and ordered the Santa Clara, Calif.-based chipmaker to pay Intergraph $150 million.

The court confirmed the ruling in Wednesday's order, which allows the appeals process to begin.

Under an agreement reached between Intel and Intergraph in April, the companies stipulated that Intel would pay Intergraph $150 million if it lost the case. The companies further agreed that Intel would pay Intergraph an additional $100 million if it filed and lost an appeal.

The additional $100 million payment, however, would also give Intel a license to Intergraph's patents, said an Intel representative. Alternatively, the two companies held out the possibility that they could negotiate a license on the patents.

If Intel wins the appeal, it won't get the $150 million back, but it won't have to pay Intergraph any more fees and won't be barred from shipping Itanium chips.