Intel pays Nvidia $1.5 bn in license dispute

Intel Corp said it is paying graphics chip designer Nvidia Corp a USD 1.5 bn licensing fee, settling a legal dispute over a license to make chipsets.

Under the agreement, Intel, the world's largest microchip maker, will be allowed to use some patents belonging to Nvidia.

Intel sued Silicon Valley neighbor Nvidia in 2009 and Nvidia counter-sued in the fight over chipsets, which are groups of integrated circuits that connect to the microprocessor in a PC.

In 2004, Intel agreed to let Nvidia, which specializes in graphics processors, design chipsets for its microprocessors, while it would be able to use some of Nvidia's technology in its own chipsets.

But in its suit filed in a Delaware court, Intel said the agreement did not extend to new microprocessors it later launched with a new component called integrated memory controllers.