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United States : Nvidia Escalates Patent-licensing Battle With Intel.


Nvidia has delayed the development of chipsets that work with Intel's microprocessors This is a list of microprocessors. Intel

Main article: List of Intel microprocessors
  • List of Intel Celeron microprocessors
  • List of Intel Core microprocessors
  • List of Intel Core 2 microprocessors
, citing "unfair business tactics" employed by Intel, the company said on Thursday.

Nvidia's move also intensifies an ongoing patent-licensing battle in which both companies have accused each other of breaching a chip-licensing agreement signed in 2004. Nvidia currently makes chipsets -- a set of integrated circuits Integrated circuits

Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1.
 -- for Intel and Advanced Micro Devices CPUs, to help processors communicate with components like network and storage controllers.

In a lawsuit filed in February, Intel asked a judge to declare that Nvidia was not licensed to produce chipsets that cover Intel's new Nehalem-based DMI (Desktop Management Interface) The first desktop management standard from the DMTF. Enabling PCs to be monitored from a central console, it was superseded by the DMTF's Common Information Model (see CIM).  (direct media interface) bus, which connects the CPU CPU
 in full central processing unit

Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit.
 to the system's memory. Nvidia earlier this year countersued, saying the agreement covered the bus, which allows the company to make chipsets for new Intel processors.

"Because of Intel's improper
In mathematics
  • Improper rotation
  • Improper integral
  • Improper fraction
  • Improper prior
  • Improper distribution
  • Improper point
  • Improper limits
Other
  • Improper English
  • Improper motion
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 claims to customers and the market that we aren't licensed to the new DMI bus and its unfair business tactics, it is effectively impossible for us to market chipsets for future CPUs," an Nvidia spokesman said in a statement.

Nvidia is postponing further chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration).  investments until it resolves the legal issues with Intel, the Nvidia spokesman said.

There are certain disagreements between Intel and Nvidia on the chip licensing, which is why Intel had to go to court to resolve the matter, said Chuck Mulloy, an Intel spokesman. Nvidia's decision could simply be related to its business, he said.

Postponing investments in the development of chipsets for Intel's processors could make financial sense for Nvidia because of the uncertainty surrounding sur·round  
tr.v. sur·round·ed, sur·round·ing, sur·rounds
1. To extend on all sides of simultaneously; encircle.

2. To enclose or confine on all sides so as to bar escape or outside communication.

n.
 the case, said Dean McCarron, principal analyst at Mercury Research.

Stopping the investment is a good option for Nvidia in case the licensing issue doesn't get resolved, McCarron said. The decision could put the company's chipset business in a "cash cow Cash Cow

1. One of the four categories (quadrants) in the BCG growth-share matrix that represents the division within a company that has a large market share within a mature industry.

2.
" mode, with steady income and no research-and-development expenditure. The R&D money could be redeployed in other areas like graphics, which is where Nvidia is strong. It would yield a short-term financial benefit for the company, McCarron said.

But it is normal for companies to exchange lawsuits when there is a major change in chip technology, McCarron said. Intel and Via were involved in a much-publicized lawsuit earlier in the decade that got dropped the day it was supposed to go to trial, McCarron said. Such chipset suits end up getting settled a few months or years after the new buses are launched, he said.

Copyright : Euclid Infotech Pvt. Ltd.

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Publication:TendersInfo
Date:Oct 10, 2009
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