Three federal patent litigations, three International Trade Commission investigations, and one measly state court suit are mooted by the settlement. HP outgunned Gateway for patent infringement 27 to 13, with patents covering numerous computer functions, including notebook power management, cursor control, keyboarding, and peripheral device interfaces.

Gateway's litigation calculator figured the seven-year, cross-license deal a bargain at only $4.3 million a year, vis-à-vis $12 million in budgeted 2006 litigation costs saved.

Gateway couldn't put its finger on why it chose now, rather than before or later, to settle. "It was just a sound business decision for shareholders," Gateway spokesman David Hallisey mumbled.

In related news, Gateway has signed up for remedial classes in strategic planning during summer school.

Meanwhile, wheeler-dealer HP let slip it had only 115 other patent licensing negotiations under way.