SANTA CLARA, Calif. ( TheStreet) -- Intel ( INTC) will pay chipmaker Nvidia ( NVDA) $1.5 billion to settle the long-standing patent dispute between the two companies. According to an SEC filing, the two companies have now entered into a patent cross license agreement that lasts until March 31, 2017. The agreement also includes settlement of the existing litigation between the companies, it added.
"This agreement ends the legal dispute between the companies, preserves patent peace and provides protections that allow for continued freedom in product design," said Doug Melamed, Intel's general counsel, in a separate statement. "It also enables the companies to focus their efforts on innovation and the development of new, innovative products." In 2009, Nvidia launched a counter suit against Intel, which had accused the graphics chipmaker of breaching a key licensing contract. Intel shares dipped 7 cents, or 0.34%, to $20.62 after market close on Monday. Nvidia's stock gained 92 cents, or 4.45%, to reach $21.55. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.