Intel Corp (INTC)

[Elmer Phud]

Following our earlier story in which NVIDIA revealed Intel had issued a court filing against it, Intel has issued a swift response.

NVIDIA said the Intel filing alleged that the cross license agreement signed by the two companies in 2004 doesn't apply to CPUs with integrated memory controllers, such as the latest generation Core i7 processors, which are codenamed Nehalem.

This is the official Intel statement, responding to NVIDIA's statement, verbatim:

Intel has filed suit against NVIDIA seeking a declaratory judgment over rights associated with two agreements between the companies.

The suit seeks to have the court declare that NVIDIA is not licensed to produce chipsets that are compatible with any Intel processor that has integrated memory controller functionality, such as Intel's Nehalem microprocessors and that NVIDIA has breached the agreement with Intel by falsely claiming that it is licensed.

Intel has been in discussions with NVIDIA for more than a year attempting to resolve the matter but unfortunately we were unsuccessful. As a result Intel is asking the court to resolve this dispute.

It is our hope that this dispute will not impact other areas of our companies' working relationship.

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