Nvidia issues a countersuit against Intel

Posted Mar 27th 2009 11:00AM by Mark Fightmaster
Filed under: Intel (INTC)

Late yesterday, chip maker Nvidia (NASDAQ: NVDA) announced a countersuit against Intel (NASDAQ: INTC), as the two quarrel over what should be covered by a license agreement reached in 2004. NVDA's suit is in a Delaware Chancery Court, and it alleges that INTL breached a license agreement wherein the two companies had access to each other's technologies.

The dispute began a month ago, as INTC filed a motion against NVDA (in the same court), noting that the agreement didn't allow NVDA to make chipsets with certain INTC chips. NVDA has dismissed this notion, claiming that INTC is blocking them from "making use of the very license rights that they agreed to provide."

According to INTC, the two companies "have a significant disagreement over Nvidia's rights in the agreement with Intel," adding, "the issues are now crystallized and we'll ask the court to sort this out."

NVDA has performed well of late, toppling long-term resistance at the $10 level. The last time the chipmaker ascended atop this level was last October. With $10 in its rearview mirror, we could see NVDA use it as support when necessary. Furthermore, any pick up in the economy could lead to higher sales for the companies that NVDA (and INTC) provides its products to, leading to better days.

Tags: chips, inthenews, lawsuit, lawsuits, legal disputes, LegalDisputes, nvda, nvidia, technology