Intel, Nvidia make 'patent peace,' settle legal disputes

Summary:Intel will pay Nvidia $1.5 billion over the next five years to settle all legal disputes. The two companies have also entered a cross-licensing patent deal.

Intel said Monday that it will pay Nvidia $1.5 billion over the next five years to settle all legal disputes. The two companies have also entered a cross-licensing patent deal.

The chip giant said the settlement "preserves patent peace" between the companies, according to a statement.

Here are the key details:

  • Intel gets a license for Nvidia's patents and vice versa;
  • Intel and Nvidia have released all legal claims;
  • Intel will pay $1.5 billion to Nvidia over five years.

Nvidia said in a statement that it received good value for its intellectual property. The Intel-Nvidia deal excludes Intel patents for processors, flash memory and certain chipsets. The Intel payments will add about $233 million in operating income and 29 cents a share of net income for the full year.

Topics: Intel, Hardware, Processors

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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