Nvidia Corp. on Thursday said that it had filed a countersuit in the Court of Chancery in the State of Delaware against Intel Corp. for breach of contract. The action also seeks to terminate Intel's license to Nvidia’s 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 central processing units with integrated memory controllers, such as its Nehalem processor.
“Nvidia did not initiate this legal dispute. 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," said Jen-Hsun Huang, president and chief executive officer at Nvidia.
Nvidia entered into the disputed agreement in 2004 to be able to address with Intel-based platforms. In return, Intel took a license to Nvidia’s rich portfolio of 3D, GPU, and other computing patents.
Nvidia claims that it had been attempting for more than a year to resolve the disagreement with Intel in a fair and reasonable manner. Intel claims the same.