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Intersil, Proxim settle lawsuit

Chipmaker Intersil and network gear maker Proxim have settled pending patent-related lawsuits between one another, including those before the International Trade Commission and Delaware and Massachusetts federal courts. The two companies have agreed to dismiss all claims against each other and have entered into a cross-license agreement for their respective patent portfolios. Milpitas, Calif.-based Intersil will make a one-time $6 million payment to the network gear maker. Proxim will be able to purchase 802.11 products using Intersil's chips.

Sunnyvale, Calif.-based Proxim will record a charge of about $3 million in the first quarter of 2003 for legal fees associated with the settlement.