All Disputes Dropped, Intel Pays NVIDIA 1.5 Billion Licensing Fee

This was really the only way this one could turn out, these companies have hitched their wagons to each other and while Intel could definitely be ok without NVIDIA’s graphics cards they definitely would be taking a hit. At this point, nobody really does it better than NVIDIA. Today, NVIDIA announced that they have signed a new six-year cross-licensing agreement with Intel. Intel will pay NVIDIA a $1.5 billion licensing fee which will allow them future use of NVIDIA’s technology and patents. The licensing fees will be paid  in five annual installments, beginning Jan. 18, 2011.

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As a a part of the agreement, both companies have agreed to drop all outstanding legal disputes against each other. I love the irony of corporate relationships. This is a cross license agreement and while NVIDIA will have access to much of Intel’s portfolio this deal does exclude Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform. They got this deal done just in time as the existing agreement is set to expire March 31, 2011.

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