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.
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Talkback
RE: Intel, Nvidia make 'patent peace,' settle legal disputes
I'd say 1.5 billion dollars over five years means Nvidia won this battle decisively. More than that, however, it turns out, Intel was trying to eliminate competition but was brought to justice by Nvidia legal staff.
At least that's what I take away from all this.
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