Nvidia and Samsung settle patent dispute

Nvidia Corp. and Samsung Electronics Co. have managed to settle a patent dispute related to graphics chips. If a settlement had not been made, Nvidia could have faced a ban on the importation of its graphics chips.

Samsung and Nvidia released a joint statement in which they agreed to license a “small number of patents by each company to the other, but no broad cross-licensing of patents or other compensation”. The agreement was finalised just a few hours before the U.S. International Trade Commission was to announce its final decision in regard to a case Samsung had filed against Nvidia.

In the case, Samsung claimed that Nvidia's Shield tablet infringed on three patents it held that were related to the manner in which the chips were manufactured. The Korean company argues that the patents cover the basic circuit designs that allow the chips to be smaller in size and perform faster. This helps cut down in manufacturing costs and saved Nvidia a great deal of money.

Nvidia has countered Samsung's argument by claiming that the patents were related to technology which was no longer even used by the company. The company was also against the harsh import ban since the disputed technology only related to minor features of its products.

Biostar Microtech International Corp., Jaton Corp., and EliteGroup Computer Systems Co. and several other of Nvidia's customers were also involved in the case.

The Agreement between Nvidia and Samsung means that all litigation in district court, the U.S. International Trade Commission and the U.S. Patent and Trademark Office will come to a close.

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