Intel, Digital in Talks to Settle Patent Dispute

Intel Corp. and Digital Equipment Corp. are working furiously to resolve their patent litigation fight before the end of the week, sources said. The Wall Street Journal reported that Digital is seeking to license its Alpha processor technology to Intel in exchange for more than $1.5 billion. Alpha technology is faster and technically superior to the architecture used by Intel in its x86 chip family. Maynard, Mass.-based Digital in May filed a suit against Intel, the Santa Clara maker of the popular and profitable Pentium microprocessors, alleging Intel infringed on 10 of Digital’s patents. A Digital spokesman declined to comment. Intel said it could neither confirm nor deny that the talks were going on. Intel’s stock edged up 19 cents to close at $93.50 on Nasdaq. Digital rose $4 to close at $48.75 on the New York Stock Exchange.