11th jan, 2011

Intels bow to Nvidia costs $ 1.4 billion

Intel and Nvidia have announced a cross-licensing agreement as the end of the two companies’ lawsuit over who is using who´s patents and breach of an earlier contract. Intel sued Nvidia in 2009.
The result of the agreement is that Intel agrees to pay Nvidia $ 1.4 billion for possible breach of previous earlier agreement. That is quite a large amount of money and will have Nvidia celebrating. It also clears away any legal uncertainty about both companies, which is welcomed especially Intel. Mercury News calls the agreement “a validation for Nvidia, whose main business is making graphics chips for computers. Nvidia had accused Intel of freezing it out of the market for a different type of chip called a “chipset,” which handles various functions within a computer”.
This also illustrates how your IP or know-how can be tied directly into your business as a value driver. Nvidia’s IP department can trace a direct link between the company’s business and IP – thereby linking earnings and products with IP.


Yes, it’s certainly true that, in order to maximize their assets, more companies need to realize both the inherent and the potential value of their intellectual property. The good news is that more and more business executives are waking up to this fact; and, of course, patent litigation results like this one definitely don’t hurt in making the case for paying greater attention to IP.

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