Friday, March 27, 2009

Nvidia Countersues Intel on License Agreement

A nice break from the he said, she said of Intel’s recent lawsuit with AMD is... Intel's he said, she said lawsuit with Nvidia. The latter has filed a counter-suit against Intel claiming a breach of contract.

In February Intel filed a lawsuit against Nvidia, which stated that the chipset license agreement the two companies signed four years ago does not extend to Intel’s future generation CPUs with integrated memory controllers.

"The disagreement is over the fact that they (Intel) don't believe we have the right to design chipsets for CPUs with integrated memory controllers, which we do," said Nvidia CEO Jen-Hsun Huang at the time. "Nvidia entered into an agreement in 2004 in order to bring platform innovations to Intel CPU based systems, and in return, Intel took a license to our rich portfolio of 3D, GPU, and other computing patents."

Reuters today reported that Nvidia is claiming that Intel has “manufactured” the licensing dispute as part of a “calculated strategy to eliminate Nvidia as a competitive threat.” According to Reuters, Nvidia believes Intel made misleading statements designed to undermine Nvidia's licensing rights and the counter-suit “seeks to terminate Intel's license to Nvidia's patents related to graphics processing and three-dimensional computing.” Reuters goes on to cite Nvidia spokesman Hector Marinez as saying Nvidia believes that without a licensing agreement, Intel's line of integrated graphics chips violate Nvidia's patent portfolio.

Previous reports say that the two have been fighting over this for a while. Huang said last month that Nvidia has been attempting to resolve the disagreement with Intel in a fair and reasonable manner for over a year. Huang also claimed that Nvidia’s Ion platform was what triggered the hostile action.

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