Former Rival Sues Intel over Patent Claims

CNET News on October 11, 2006

Transmeta, the chip-maker that tried and failed to compete with Intel, has now sued its former rival for patent infringement, claiming that Intel used its efficiency-oriented ideas to develop $10 billion worth of computer chips. The suit, filed in Delaware Wednesday, claims Intel violated 10 patents. Transmeta was the first chip maker to see that power usage would be a critical concern for chip and computer makers, but its efforts to compete with Intel fell flat. Between 1999 and 2005, it lost more than five times as much money as it made in revenues. Last year, the company reorganized as an intellectual property firm.