RealNetworks has announced that it has signed an agreement to sell a significant number of its patents (190 patents plus 170 patent applications) as well as its next generation video codec software to Intel for a purchase price of $120 million (around R935 million). Under terms of the sales agreement, RealNetworks retains certain rights, enabling it to continue employing the patents in current and future products.

Renée James, Intel senior vice president and general manager of the Software and Services Group, explained that this acquisition is key, since the technology industry is moving towards an experience-centric model. According to James users are demanding more media and graphics capabilities in their computing devices and the acquisition of these media patents, additional patents and video codec software will assist Intel in building upon these.  

“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,” said James.

Momerandum of understanding

Besides the actual sale of the patents and software RealNetworks and Intel also signed a memorandum of understanding (MoU) to collaborate on the future support and development of the next-generation video codec software as well as products making use of this software.

"We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets," stated Thomas Nielsen, RealNetworks president and CEO.

 

In related news, it has recently been revealed that Samsung will be merging the bada code with the new open-source, Linux-based Tizen OS that is backed by Intel.