Under the deal, RealNetworks is selling about 190 patents and 170 patent applications as well as software for its video codec software.
RealNetworks said it is keeping certain rights to continue to use the patents in current and future products. The sale gives RealNetworks a significant amount of new capital to invest in new products and businesses. The company said it does not expect the deal to have any material impact on its businesses.
“Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets,” said Thomas Nielsen, RealNetworks President and CEO. “It represents an extraordinary opportunity for us to generate additional capital to boost investments in new businesses and markets while still protecting our existing business."
The move signals further transition for RealNetworks, one of the pioneers of digital information such as music and movies on the internet. But the company has struggled as it has made the transition from creating content to focusing on technologies for distributing and managing media among different types of devices.
The deal gives Intel a cache of patents during a time when tech companies are increasingly bolstering their patent holdings to guard against patent-infringement lawsuits, or to seek legal action against tech rivals.
“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, Intel senior vice president and general manager of Intel's Software and Services Group. “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.”
Over the past 18 months, Microsoft has aggressively pursued licensing agreements with hardware manufacturers who build Android-based devices, technology the Redmond company claims infringes on its intellectual property.
In August, Google spent $12.5 billion to acquire Motorola Mobility, a move that signaled a change in the tenor of the patent battle going on between the search giant and Microsoft. Earlier in January, Google snagging 217 of IBM’s patents.
The patent deals inked behind closed doors -- and the battles waged in courtrooms -- are part of a period of unrest that typically follows any disruptive technology.
Santa Clara, Calif.-based Intel is trying to find new revenue streams after a slowdown in the PC market as users shift to tablets and smartphones.
In December, Intel formed a unit that will focus on chips for smartphones and tablets. The move comes about a year after Intel made a similar move by creating a unit to focus on networks and tablets.
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