MTI Sells Its Patents for $40 Million

MTI Technology Corp., which provides data storage, is selling its patent portfolio for $40 million to EMC Corp. of Hopkinton, Mass.

EMC, a maker of computer information storage and retrieval products, said the two companies also will share additional royalties under certain conditions. The pact includes a five-year licensing partnership that will provide each company with nonexclusive licensing rights to each other’s existing patents and certain future patents.

EMC will pay the $40 million over the next five years for the patent portfolio, which covers 29 U.S. patents and non-U.S. counterparts, as well as certain pending applications. MTI stock rose 22%, or 50 cents a share, to close at $2.75 a share Monday in Nasdaq trading.