Intel has agreed to buy a large number of patents and video codec software from RealNetworks, the company behind RealPlayer, for $120 million.
The deal will involve Intel acquiring 190 of RealNetworks' patents and 170 of its pending patent applications, giving the chip giant a significant boost to its technology portfolio.
It is not clear what the patents relate to, but given RealNetworks' focus on digital media it will likely be in this area. This, and the sale of its video codec software, suggests that Intel intends to formally move into the digital video sector.
Intel indicated that it would use the patents and software for its Ultrabook devices and smartphones, which might set them apart from rivals as one of the top choices for digital media enthusiasts.
Intel will be hiring the team behind the video codec software and the two companies also signed a memorandum of understanding to collaborate on future support and development of the software and related products.
RealNetworks believes the sale won't adversely affect its business, partly because it will retain the rights to use the patents in question for its existing and future products.
Read more: Intel to buy RealNetworks patents and video codec software by VR-Zone.com