Monday, January 10th 2011
Intel to Pay NVIDIA Technology Licensing Fees of $1.5 Billion
NVIDIA announced today that it has signed a new six-year cross-licensing agreement with Intel. For the future use of NVIDIA's technology, Intel will pay NVIDIA an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011. NVIDIA and Intel have also agreed to drop all outstanding legal disputes between them.
"This agreement signals a new era for NVIDIA," said 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."
Under the new agreement, Intel will have continued access to NVIDIA's full range of patents. In return, NVIDIA will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel's patents, consistent with its existing six-year agreement with Intel. This excludes Intel's proprietary processors, flash memory and certain chipsets for the Intel platform.
The existing agreement is to expire March 31, 2011.
Pursuant to U.S. GAAP, a portion of the proceeds will be accounted for and attributed to the settlement of prior legal claims. This amount, which NVIDIA anticipates to be less than $100 million, will be included in the company's fourth-quarter results.
The balance of the licensing fees will be accounted for on a straight-line basis over the six-year term of the agreement. Accordingly it is anticipated that this would amount annually to approximately $233 million of operating income and an increase in net income of $0.29 per diluted share, on a full year basis.
"This agreement signals a new era for NVIDIA," said 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."
Under the new agreement, Intel will have continued access to NVIDIA's full range of patents. In return, NVIDIA will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel's patents, consistent with its existing six-year agreement with Intel. This excludes Intel's proprietary processors, flash memory and certain chipsets for the Intel platform.
The existing agreement is to expire March 31, 2011.
Pursuant to U.S. GAAP, a portion of the proceeds will be accounted for and attributed to the settlement of prior legal claims. This amount, which NVIDIA anticipates to be less than $100 million, will be included in the company's fourth-quarter results.
The balance of the licensing fees will be accounted for on a straight-line basis over the six-year term of the agreement. Accordingly it is anticipated that this would amount annually to approximately $233 million of operating income and an increase in net income of $0.29 per diluted share, on a full year basis.
31 Comments on Intel to Pay NVIDIA Technology Licensing Fees of $1.5 Billion
Back on-topic: 1.5bil? Pocket change for Intel.
What is the etc?
drivers causing BSOD on install, killing hardware, corrupting hard drive data on SATA (at a time when most were still IDE, but still)
a quick google will find you all the info you need, no use me linking it. they were well known issues.
Just kidding. :D He's right people, although nForce chipsets were legendary enthusiast parts, especially the legendary nForce2 Ultra 400, some nVidia chipsets were pretty finicky when it came to their memory controllers which could cause anything from BSOD's to dead RAM. Even at stock. Even when AMD moved their IMC onto the CPU, these issues persisted.
With that said, what were we (enthusiasts) supposed to use back then? SiS, Intel crapola, growingly laugable VIA junk (after KT600, VIA was outclassed and could not compete in high end), or those rare and also finicky ALI/ULI boards? In conclusion: NVIDIA RAWWWWWKS!
Carry on...
...
..
.