Intel buys Real Player Codec

Intel has signed a deal with the creators of RealPlayer to buy their patents and video codecs. The company Real Networks already consists of products such as GameHouse, Helix, RealDownloader, RealPlayer, Rinse and SuperPass and now all this technology will be available to Intel as part of this deal. Real Networks are hailing it as an opportunity to grow further by generating more capital. Intel expects these video codecs to come in useful for their range of Intel products maybe adding further integration of video codecs into its GPU and CPU components particular for mobile devices. Real Networks have stated that they do not think this deal will harm business even though Intel will have full access to all their patents.

You can read the entire press release here:

RealNetworks, Inc. today announced that it has signed an agreement to sell a significant number of its patents and its next generation video codec software to Intel Corporation for a purchase price of $120 million. Under terms of the sale, RealNetworks retains certain rights to continue to use the patents in current and future products.

“Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets,” said Thomas Nielsen, RealNetworks President and CEO. “It represents an extraordinary opportunity for us to generate additional capital to boost investments in new businesses and markets while still protecting our existing business.

“RealNetworks is pleased Intel has agreed to acquire our next generation video codec software and team,” said Nielsen. “Intel has a strong reputation as a technology innovator, and we believe they are well positioned to build on the development work and investment we’ve made in this area.”

“As the technology industry evolves towards an experience-centric model, users are demanding more media and graphics capabilities in their computing devices. The acquisition of these foundational media patents, additional patents and video codec software expands Intel’s diverse and extensive portfolio of intellectual property,” said Renée James, Intel senior vice president and general manager of the Software and Services Group. “We believe this agreement enhances our ability to continue to offer richer experiences and innovative solutions to end users across a wide spectrum of devices, including through Ultrabook devices, smartphones and digital media.”

In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products.

“We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets,” said Nielsen.

RealNetworks does not anticipate that the sale of the approximately 190 patents and 170 patent applications and next generation video codec software will have any material impact on its businesses. RealNetworks businesses include a wide variety of SaaS products and services provided to global carriers, RealPlayer, the Helix streaming media platform, GameHouse online and social games, SuperPass and other media products and services sold both directly to consumers and through partners.