Transmeta has signed a non-exclusive licensing agreement with NVIDIA Corp. for its LongRun and LongRun2 computing technologies. The deal is worth $25 million in non-refundable license fee that NVIDIA has agreed to give in one single payment.

Under the agreement, NVIDIA was granted a non-exclusive and fully paid-up license to all of Transmeta’s patents and patent applications, as well as a non-exclusive license and transfer of certain Transmeta advanced power management and other computing technologies.

“We are very pleased to have achieved this license with NVIDIA,” said Les Crudele, president and CEO of Transmeta. “We believe that this agreement both illustrates the value of Transmeta’s intellectual property and technologies to our industry and realizes for Transmeta stockholders an immediate return from the strategic licensure of our intellectual property rights.”

Transmeta is responsible for developing and licensing computing, microprocessor and semiconductor technologies. The first major breakthrough for the company was the x86-compatible software-based microprocessor, which combined low power consumption with high performance, low cost and small size.

The company has currently stopped production, sale and support of its microprocessors, and now focuses on developing and licensing computing, microprocessor and semiconductor technologies and related intellectual property.

The LongRun2 Technology is, according to Transmeta, “a suite of advanced power management, leakage control and process compensation technologies,” capable of diminishing the effects of increasing leakage power and process variation in advanced submicron geometries.

The LongRun and LongRun2 Technologies are designed for a large spectrum of applications, from server, to desktop and mobile devices. LongRun2 is applicable for all types of mobile phones, basic or smart phones.

Taking that into consideration, we can assume that NVIDIA wanted the license for its Tegra graphics chip for mobile devices, which was announced a couple of months ago. The chip is intended for use in phones, MP3 players, and portable navigation devices (PNDs), as well as increasingly popular mobile internet devices (MIDs).