Nvidia Makes A Countersuit Against Intel Page: 1
Nvidia Makes A Countersuit Against Intel

Last month, Intel filed suit against Nvidia claiming licensing breaches.  At the time, Nvidia made only verbal responses.  Now it seems they have seen fit to make a legal response as well.  Nvidia has issued an official press release saying they have filed a countersuit seeking to end Intel's license on their patent portfolio as well.  In this release, Nvidia has made public not only the terms and documentation of their own suit, but that of the original Intel suit as well.

NVIDIA Corporation today announced that it has filed a countersuit in the Court of Chancery in the State of Delaware against Intel Corporation for breach of contract. The action also seeks to terminate Intel's license to NVIDIA's valuable patent portfolio.

NVIDIA's countersuit was brought in response to a filing by Intel last month in the Delaware court, alleging that the four-year-old chipset license agreement does not extend to Intel's future generation CPUs with "integrated" memory controllers, such as its Nehalem processor.

"NVIDIA did not initiate this legal dispute," said Jen-Hsun Huang, president and CEO of NVIDIA. "But we must defend ourselves and the rights we negotiated for when we provided Intel access to our valuable patents. Intel's actions are intended to block us from making use of the very license rights that they agreed to provide."

NVIDIA entered into the disputed agreement in 2004 to bring platform innovations to Intel CPU- based systems. In return, Intel took a license to NVIDIA's rich portfolio of 3D, GPU, and other computing patents. NVIDIA had been attempting for more than a year to resolve the disagreement with Intel in a fair and reasonable manner.

To read Intel's initial filing, go to:
www.nvidia.com/object/io_1238021549708.html

To read NVIDIA's response and counterclaim, go to:
www.nvidia.com/object/io_1238021621363.html

This action is only surprising perhaps in how long it took to occur.  What will Intel do, now that the the patent portfolio license that they had challenged Nvidia for so long to obtain is in danger?

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