Intel filed a suit against NVIDIA a few months back alleging that the license agreement between Intel and NVIDIA didn’t allow NVIDIA to build chipsets for Intel processors with integrated memory controllers like the new Core i7 parts.

NVIDIA said the agreement did cover new parts and went on working to bring the new chipsets to market, which led to Intel filing suit against the GPU maker. NVIDIA has now filed a countersuit against Intel for breach of contract and seeks to terminate Intel's license to NVIDIA's patent portfolio.

"NVIDIA did not initiate this legal dispute," said Jen-Hsun Huang, president and CEO of NVIDIA. "But we must defend ourselves and the rights we negotiated for when we provided Intel access to our valuable patents. Intel's actions are intended to block us from making use of the very license rights that they agreed to provide."

Via NVIDIA