Intel has agreed to purchase a collection of almost 200 patents and 170 patent application from the RealNetwork. This $120 million deal also includes Real’s next-generation video codec software.

RealNetworks President and CEO Thomas Nielsen claims:

“Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets, …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.”

Details of the sale allow RealNetwork to continue to use the patented technology in current and future products. The company will continue to stay focused on technology for distributing and managing media on a variety of different devices as well as investing in different avenues.

Stock prices have been rising for RealNetwork. Just thursday they were up 32%!

On the Intel side of things, senior vice president and general manager of Software and Services Group, Renee James comments:

“The acquisition of these foundational media patents, additional patents and video codec software expands Intel’s diverse and extensive portfolio of intellectual property….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.”