By John Oates, 21 December 1998 00:20
NEWS US chip giant Intel has settled its legal feud with graphics processor manufacturer, S3. The companies have exchanged 10 year licenses for each others' semiconductor products. Intel will also invest in "warrants to buy S3 shares under undisclosed terms", according to a statement from S3. The agreement should help speed development of Intel's Merced chip which was partly covered by S3 patents. Intel has also granted a bus license to S3 for current and future chipsets, and has recognised S3 as an Intel AGP 4X validation partner. Gartner Group analyst, Joe D'Elia, said: "The bus licence is an interesting development - Intel is freeing this up now they have licensed it to three or four companies." The deal could undermine the US government's anti-trust case against the chip giant, he added. Intel was unavailable for comment.
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