Transmeta sues Intel over patents

Intel Corp., the world's largest computer chipmaker, has been sued by competitor Transmeta Corp. and accused of infringing on 10 patents covering power-efficiency and microprocessor innovations.

Transmeta, a semiconductor-design company whose investors included billionaires George Soros and Paul Allen, filed a complaint in federal court in Wilmington, Del., to stop Intel from the unauthorized use of its technology in products such as its Pentium III and Pentium 4 chips, the company said.

Transmeta. based in Santa Clara, Calif. is asking for an order blocking the use of its innovations and an award of damages.

Chuck Mulloy, a spokesman for Santa Clara-based Intel, didn't immediately return calls seeking comment.

Intel has about 350 workers in Riverton.

"After endeavoring to negotiate with Intel for fair compensation for the continued use of our intellectual property, we have concluded that we must turn to the judicial system to be fairly compensated for our inventions," John O'Hara Horsley, Transmeta's general counsel, said in a statement.

Shares of Intel were unchanged at $20.89 in Nasdaq Stock Market trading Wednesday. They've fallen 16.3 percent this year, cutting the company's market value to $120.5 billion.

Shares of Transmeta fell 1 cent to $1.12. The shares have fallen less than 1 percent this year.

In May, Transmeta shares fell 33 percent after the company reported a loss for the first quarter and lowered its earnings forecast for the year.