Tivo and IBM entered into a cross license deal in which a non-exclusive and world wide license was granted over patents and patent applications by each party to the other party. IBM granted to Tivo a license over all its products except general purpose data processing products and data storage devices that are primarily sold separately from other hardware and Tivo granted to IBM, a license over all products other than digital media recorders and digital media recorder software. The amount of money involved in the deal was not disclosed.

Transmeta, a company that develops and sells software-based microprocessors, sued Intel for infringing ten patents covering computer architecture and power efficiency technologies. The company alleged in its suit that Intel had been infringing its patents by making and selling products such as Pentium III, Pentium 4, Pentium M, Core, Core 2 and so on and sought an injunction in addition to damages. Transmeta filed the suit against Intel after the parties failed to negotiate a license deal over its patents. Experts believe that the suit is an attempt by Transmeta to force Intel into a settlement.