Intel, Nvidia sign $1.5 billion licensing deal

In the agreement, the two companies will resolve ongoing patent litigation

Intel and Nvidia have signed a patent cross-licensing agreement and ended a long-standing legal dispute between the two companies, Intel said Monday.

Under the agreement, Intel will pay Nvidia $US1.5 billion, Intel said in a press release.

"This agreement ... preserves patent peace and provides protections that allow for continued freedom in product design," Doug Melamed, Intel's senior vice president and general counsel, said in a statement. "It also enables the companies to focus their efforts on innovation and the development of new, innovative products."

Under the agreement, both companies get licenses to each other's patents.

Nvidia, which makes chipsets to help CPUs communicate with components like network and storage controllers, had accused Intel of unfair business tactics in the long-standing patent-licensing battle. Both companies had accused each other of breaching a chip-licensing agreement signed in 2004.

Intel filed a lawsuit against Nvidia in Chancery Court in Delaware in February 2009, asking the judge to rule that Nvidia is not licensed to produce chipsets compatible with Intel processors with integrated memory-controller functionality, such as Intel's Nehalem microprocessors. The long-term licensing agreement announced Monday ends that litigation, Intel said in a statement.

After Intel's February 2009 lawsuit, Nvidia filed a countersuit, saying the past agreements covered the direct media interface bus for Intel's CPUs.

Intel will begin making payments to Nvidia this month, with $300 million due next week. Annual payments will continue through January 2016, according to the agreement.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issueslegalintelprocessorsintellectual propertypatentnvidiapc componentsComponentsGraphics boardsDoug Melamed

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?