Intel pays Nvidia $1.5bn in patent dispute settlement


Intel pays Nvidia $1.5bn in patent dispute settlement

Warwick Ashford

Intel has agreed to pay Nvidia $1.5bn over six years in a licensing deal to settle a patent dispute between the two chipmaking companies.

Intel filed a suit against Nvidia in February 2009, saying it had to pay for licenses to make chipsets for future Intel microprocessors, but an Nvidia countersuit claimed a 2004 license with Intel covered those microprocessors.

The licensing deal will allow Intel to continue developing its own chips that integrate graphics technology based on Nvidia patents, according to the San Francisco Chronicle.

While Intel will have continued access to Nvidia's patents, Nvidia also retains the use of Intel patents from its previous agreement.

The deal "preserves patent peace and provides protections that allow for continued freedom in product design," Intel's senior vice-president Doug Melamed said in a statement.

Intel agreed a similar five-year, cross-licensing deal with AMD in November 2009 and paid its rival $1.25bn, while AMD agreed to drop all complaints.

After investigations, regulators in Europe, the US, Japan and Korea have named Intel's rivals as victims of what the regulators claim are the company's monopolistic practices.

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