Intel to pay $1.5B for Nvidia's technology licensing fees

Nvidia (NVDA) announced that it has signed a new six-year cross-licensing agreement with Intel (INTC). For the future use of Nvidia's technology, Intel will pay Nvidia an aggregate of $1.5B in licensing fees payable in five annual installments, beginning Jan. 18. Nvidia and Intel have also agreed to drop all outstanding legal disputes between them. Under the new agreement, Intel will have continued access to Nvidia 's full range of patents. In return, Nvidia will receive an aggregate of $1.5B in licensing fees, to be paid in annual installments, and retain use of Intel's patents, consistent with its existing six-year agreement with Intel. This excludes Intel's proprietary processors, flash memory and certain chipsets for the Intel platform. The existing agreement is to expire March 31.