Intel pays Nvidia $1.5bn to settle patent dispute

Silicon players Intel and Nvidia have agreed to end all outstanding legal disputes in a deal that will see Intel pay graphics specialist Nvidia $1.5bn as part of a six-year cross-licensing agreement. Intel will make the payments in five annual instalments, beginning January 18th. Intel gets a licence to Nvidia patents, while Nvidia gets limited access to Intel’s portfolio, wtih x86 not covered by the deal. Intel’s flash memory products are also excluded from the agreement.

“This agreement signals a new era for NVIDIA,” said Jen-Hsun Huang, NVIDIA’s CEO.  “Our cross license with Intel reflects the substantial value of our visual and parallel computing technologies. It also underscores the importance of our inventions to the future of personal computing, as well as the expanding markets for mobile and cloud computing.”

“This agreement ends the legal dispute between the companies, preserves patent peace and provides protections that allow for continued freedom in product design,” said Doug Melamed, Intel senior vice president and general counsel. “It also enables the companies to focus their efforts on innovation and the development of new, innovative products.”