Gateway will pay Intergraph at least $10 million to settle a Pentium-related patent-infringement suit, the companies said this week.

In addition to the $10 million, Gateway will pay Intergraph royalties of $1.25 each for certain Gateway and eMachines brand PCs sold in the United States (Gateway acquired eMachines in March). The royalty arrangement will be in place till Feb. 2009.

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