Intel Buys Patent Portfolio from Aware, Includes Wifi and LTE Patents

April 27, 2012
By: Rory Lidstone

Signal processing technologies company, Aware (News - Alert) Inc., recently announced its intention to sell a portfolio of patents and applications to multinational semiconductor chip maker Intel (News - Alert) Corp. for a sum of about $75 million, the latest purchase in the ongoing battle for technology patents. The patents sold are mainly related to Wi-Fi, long-term evolution (LTE (News - Alert)) wireless and wireline home networking.

With this purchase, Intel — which also purchased high-performance-computing (HPC) this week — is joining other technology giants such as Microsoft Corp. and Apple (News - Alert) Inc. in acquiring intellectual property, a necessary strategy after the string of lawsuits and countersuits seen over the last two years over patents.

Aware is a supplier of software and technology to the biometrics, telecommunications and healthcare industries, but the company has been making the transition to becoming mostly a software company, leading it to sell a significant portion of its patents. A representative for the company stated that it is considering monetization strategies for its remaining patents.

Aware also reported this week its earnings for the first quarter of 2012: income increased 89 percent to $1.12 million even with a sales drop of 9.8 percent. It seems that the company's business transition fueled its income increase, in addition to lower expenses.

Intel, which supplies more than 80 percent of PC processors for the world, also reported reduced earnings for the first quarter of the year after a record year in 2011. Quarterly revenue was reported at $12.9 billion, with an operating income of $3.8 billion – a net income of $2.7 billion and earnings per share (EPS) of $0.53. This marks a net income drop of 13 percent compared to last year due to a rise of spending on research and marketing. Intel said that it is looking forward to "another growth year" as it focuses on rolling out its first batch of Intel-powered phones and portable line of 'ultrabooks.'

Edited by Braden Becker