Intel to pay $1.5B to Nvidia in patent settlement
(AP) -- Intel has agreed to pay $1.5 billion over five years to Nvidia to settle a lawsuit over a key computer technology. Nvidia shares jumped.
Intel Corp. is paying to end a fight that it started when it sued Nvidia Corp. in February 2009, alleging that Nvidia didn't have the appropriate license to make "chipsets" that are compatible with Intel's latest processors. Nvidia countersued, arguing that its existing license was sufficient.
Nvidia, whose main business is making graphics chips for computers, had alleged that Intel was freezing it out of the chipset market with its lawsuit.
Both sides are agreeing to drop their lawsuits against each other. The settlement was announced Monday after the market closed.
Shares in Nvidia gained 88 cents, or 4.3 percent, to $21.51 in extended trading.
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