RealNetworks, Intel Sign Patent Deal worth $120 Million

Chip giant Intel has announced that it is buying near about 190 patents from the Washington based software maker RealNetworks.

These patents, according to Intel, are part of the $120 million deal it inked with the company. In addition, the purchase also included another 170 patent applications, as well as an agreement to co-develop and co-own RealNetwork's video encoding software.

Intel claims that this new deal will help significantly in allowing users to have an "exciting video experience" on devices running on its chips.

Experts are of the opinion that the new bunch of patents will indeed strengthen Intel's stake in the industry wherein, hardly a week goes by before a new patent-war breaks out amongst two or more rival companies.

"The planned acquisition... includes foundational media and other patents, expanding Intel's diverse patent portfolio and strengthening our focus on innovation in new markets," a company spokeswoman said, as reported by BBC News.

RealNetwork's CEO Thoman Nielsen said: "We look forward to working with Intel to support the development of the next-generation video codec software and related products".