Intel and Nvidia have announced that they have entered into a new comprehensive long-term patent cross license agreement, which has brought an end to the two companies’ legal disputes.

 

“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.”

 

According to the new agreement, Intel will have continued access to Nvidia’s full range of patents, whilst Nvidia will receive $1.5 billion from Intel in licensing fees, to be paid in annual installments over the next five year. Nvidia will also retain use of Intel’s patents, consistent with its existing six year agreement with the CPU maker, which expires on 31 March 2011.

 

“This agreement signals a new era for NVIDIA,” said Jen-Hsun Huang, Nvidia’s president and chief executive officer. “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.”