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Intel to pay NVIDIA $1.5 Billion in Licensing Fees

NVIDIA Technology has announced that it will receive US$1.5 billion in licensing fees from Intel as part of a new patent cross-licensing agreement, which will span over a total of six years. Both companies have also come to the agreement to drop all legal disputes between them.

In a legal agreement between NVIDIA and Intel, the latter has agreed to pay the former a whopping US$1.5 billion in licensing fees. Intel will pay the total amount in annual installements over a course of five years, starting from 18 January 2011.

Under this new agreement, Intel will have access to the full range of NVIDIA’s patents. Nvidia in return will also be able to retain use of Intel’s patents, excluding Intel’s proprietary processors, flash memory and certain chipsets.

All remaining legal disputes between the two companies will also be dropped with the coming of this new agreement.

As quoted by 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.”

The existing agreement between the two companies will expire on 31 March this year.


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