HP Gets $47 Million From Gateway In Patent DisputeHP Gets $47 Million From Gateway In Patent Dispute

Hewlett-Packard will get $47 million from Gateway Inc. in the settlement of patent litigation that dates back two years.

Gateway will pay HP $25 million within seven business days, and an additional $22 million will be paid within the next year. HP and Gateway will also enter into a limited cross-license agreement.

HP initiated lawsuits against Gateway and eMachines (which merged with Gateway two years ago) in 2004 and 2005, claiming infringement on 27 of HP's PC patents. In a counterclaim, Gateway asserted 13 patent claims against HP. As a result of the settlement, all legal proceedings will be dismissed.