Thursday, February 19th 2009

''Wouldn't Rule Out a Renegotiation If We Win The Suit'': Intel

Earlier this week, Intel slapped NVIDIA with a complaint claiming that NVIDIA lacked the privileges derived from earlier agreements between the two companies NVIDIA to make chipsets for Intel's new generation of processors featuring integrated memory controllers. NVIDIA however, dismissed the charges making it clear it didn't have any products in the making that currently violates the agreement, though it feels confident that under the existing agreement it could carry on with development of chipset technologies (more here). Intel pressed fresh charges against NVIDIA which state that the company falsely claimed to have acquired a license to the QuickPath Interconnect technology.

Interestingly, a report by bit-tech.net sheds light on what Intel wants: nothing, while keeping the window open for re-negotiation of agreements between the two companies as an option. Intel does not seek any form of damages from NVIDIA, except merely asking it to pay for its legal fees if Intel wins, a standard practice in court cases. Intel also seems to be using the "re-negotiation" part as a carrot to let NVIDIA concede. "I wouldn't rule out a re-negotiation if we win the suit," said Intel spokesperson Chuck Mulloy, in an interview to bit-tech. "There are options available to us and re-negotiating the license is one of them." he said. The "other options", according to Mulloy, are kept under the wraps, which might as well include termination of the whole agreement, forcing a re-negotiation if NVIDIA needs to continue making core-logic technologies for the Intel platform? Intel has made a redacted version of the complaint public as it may contain some very confidential information that cannot be disclosed. The redacted copy can be read here (PDF). So what is the whole point in this exercise? To make drastic changes in agreements between the two companies by working out a renegotiation? The turn of events in weeks, or even days to come will tell.
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