Intel, Nvidia End Litigation, Sign New Patent Agreement

By Chris Preimesberger  |  Posted 2011-01-10 Print this article Print

The chip makers forgive their past dispute and sign a new long-term licensing contract that brings "patent peace" to their corporate relationship.

Chip makers Intel and Nvidia, which in recent years have been on edge regarding gray areas in patent licensing, have resolved their 2-year-old legal dispute about whether Nvidia can develop and manufacture chip sets for Intel processors based on the company's multicore microarchitecture.

In resolving the litigation in Chancery Court in Wilmington, Del., the two Santa Clara, Calif.-based companies revealed Jan. 10 that they have signed a new long-term licensing agreement that brings "patent peace" to their corporate relationship, Intel Senior Vice President and General Counsel Doug Melamed said in a brief conference call to journalists and analysts.

Nvidia makes high-end video processors. Intel makes processors of many types but does not specialize in video. Thus, it has been a licensee of Nvidia for several years. The previous Intel-Nvidia contract was legally unclear about how advanced Intel processors could be used in Nvidia chip sets for high-end video and gaming use cases.

Intel filed the initial lawsuit regarding the dispute in February 2009.

Under the new agreement, Intel receives a license to all of Nvidia's patents, while Nvidia receives a license to most of Intel's patents with the exception of its x86-type chips and a few other products, Melamed said.

The previous Intel-Nvidia licensing contract was set to expire in March, Melamed said. Under terms of the new agreement, Intel will pay Nvidia $1.5 billion over the next six years for its licensing rights.

Finally, Intel and Nvidia released each other from all previous litigation.

"This agreement ends the legal dispute between the companies, preserves patent peace and provides protections that allow for continued freedom in product design," Melamed said. "It also enables the companies to focus their efforts on the development of new, innovative products."

Melamed was asked by an analyst "why Intel doesn't just buy Nvidia" instead of cross-licensing the products.

"Well, that just wasn't something we talked about," Melamed said with a laugh.


Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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