Chip giant Intel has become the latest tech firm to bolster its patents portfolio, agreeing to buy approximately 190 patents and 170 patent applications, as well as next-generation video codec software, from RealNetworks for US$120 million.

Intel said the deal would boost its portfolio of multimedia products targeted at “a wide spectrum of devices, including through Ultrabook devices, smartphones and digital media."

In addition to the sale of the patents and software, the two firms also signed a memorandum of understanding to collaborate on “future support and development of the next-generation video codec software and related products.”

"As the technology industry evolves towards an experience-centric model, users are demanding more media and graphics capabilities in their computing devices,” said Renée James, Intel's senior vice president and general manager of the Software and Services Group. “The acquisition of these foundational media patents, additional patents and video codec software expands Intel's diverse and extensive portfolio of intellectual property."

"Selling these patents to Intel unlocks some of the substantial and unrealised 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 will retain certain rights to continue to use the patents in current and future products. It also noted that the deal would not have “any material impact” on its businesses.