Nvidia Corp. claims that it could terminate its cross-licensing agreement with Intel Corp., which would prevent the latter from launching its first discrete graphics processor in ten years. Besides, claims Nvidia, Intel utilizes Nvidia’s intellectual property in every integrated graphics core it ships.

Drew Henry, the head of Nvidia’s core-logic business, which future is under a big question mark since Intel does not allow the company to develop and sell chipsets compatible with microprocessors featuring built-in memory controllers, said in an interview that unlike his company, Intel continues to benefit from the cross-licensing agreement.

“Nvidia believes that Intel is using Nvidia IP in currently shipping IGP products and the company also believes that Intel would not be able to develop its Larrabee graphics chips without making use of Nvidia's IP portfolio. Nvidia may ask the courts to terminate Intel's rights to these IPs in the event that it is found that Intel is in breach of contract,” Drew Henry is reported to have said in an interview with DigiTimes web-site.

It is necessary to note that Intel did not terminate its cross-licensing agreement with Nvidia, but just said that the pact does not cover central processing units with integrated memory controllers that use Quick-Path Interconnect or other similar buses. Nvidia believes that it has rights to create and sell any chipsets compatible with Intel microprocessors.

In case the court takes Intel’s side and bans Nvidia from selling chipsets for new microprocessors, the company will concentrate on chipsets compatible with microprocessors from Via Technologies, said Mr. Henry.

Intel did not comment on the news-story.

Tags: Nvidia, Intel, Geforce, Larrabee