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Posted by James Yu on Wednesday February 09, 2000 - 10:35 AM

(Post a comment)

» NVIDIA and S3 Enter Cross-License Agreement

NVIDIA And S3 Agree To Enter Into Broad Cross-License Agreement

SANTA CLARA, CA – February 9, 2000 – NVIDIA™ Corporation (Nasdaq: NVDA) and S3 Incorporated (Nasdaq: SIII) today announced that they have agreed to enter into a seven-year mutual broad patent cross-license agreement. As part of this agreement, NVIDIA and S3 have agreed to dismiss their pending patent infringement suits against each other.

"With this announcement we have reached an agreement that is mutually beneficial to both companies," said Jen-Hsun Huang, president and CEO of NVIDIA Corporation. "Over the years, S3 has developed and acquired a rich portfolio of technologies in graphics, multimedia, microprocessors and system logic. Our license agreements with SGI and S3, combined with NVIDIA's rich technology patent portfolio, gives us a strong technology base on which to build winning products."

"Access to intellectual property is rapidly becoming the highest barrier to entry in today's PC graphics market," said Andrew Wolfe, Chief Technology Officer for S3 Incorporated. "Over the past ten years, S3 has built an incredibly strong IP portfolio through internal development, as well as through licensing agreements with Intel, Exponential, Cirrus and now NVIDIA. Based on our IP strength, S3 and NVIDIA rank as possibly the only two companies positioned to win long-term in the PC graphics market."

S3 and NVIDIA in bed? It's not looking good for 3dfx right about now. Leave your thoughts below.

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#10 Author: Anonymous at 12:36pm 02/10/2000  
Response to #1:
Reply to This
Savage 4 is a piece of $#%#...even for $50 I would stay away from
that board.


The REAL TEST of a video card is its OPEN GL performance....quake 3,
kingpin,

and so on and so forth.

Any card can do 3D easily...and comparably, including the
savage...or ati cards.


But the real test of quality is the open gl...and in that arena,
Savage 4 is like a piece of

cheese plugged into your motherboard, compared to the nvidia tnt or
tnt2, for example.

A piece of $#%#

 
#9 Author: Headhunter at 04:22pm 07/11/2002  
Comment:
Reply to This
The first and probably most important thing is that they have less
to develop now that they share patents with each other, which will
result in lower prices!! Imagine how much money we could have saved
if nVidia could have just used S3TC instead of developing their own
compression...


And although as valiance said they won't be actually cooperating on
hardware this still does represent a larger threat to 3DFX: the fact
that they constantly ignore quality of image to go for insane fill
rates will come back to bite them in the $%%.

 
#8 Author: Anonymous at 08:54pm 02/9/2000  
Response to #1:
Reply to This
S3 has some very decent technology as far as hardware is concerned.
If the management of S3 cared more about their software/driver
efforts, they would definately come out on top. This x-licencing
agreement is set to benefit mostly the S3 Corp., because software
code is much easier and cheaper to reshape and adapt than the gates
on a chip.

 
#7 Author: GX-Alan at 04:22pm 07/11/2002  
Response to #1:
Reply to This
The cross-licensing technology just lets Nvidia use S3's patents for
free and S3 can use Nvidia's patents for free as well. S3 has an
amazing patent portfolio including the Exponential patents which are
for a Itanium-like CPU core originally developed as an non-Motorola
PowerPC chip. S3 also has some of the best DVD technology in the
industry. Nvidia on the other hand, has time and time again come
out with a high-performance 3D graphics card. They aren't going to
be *actively* sharing technology, but you can be sure that S3 will
borrow whatever Nvidia has that's cool, and vice-versa.


Alan

 
#6 Author: valiance at 04:22pm 07/11/2002  
Comment:
Reply to This
All of you are so confused, it makes me laugh how pathetically
stupid you are. They are not becoming best buddies, or working
together, lol. What they did was sign a 7 year agreement to
hold-off all the patents that each company had.. meaning that if
Nvidia patented a certain technology, S3 may utilize it for 7 years,
and vice versa. They will NOT be building a chip together, or
sharing technology, etc. It is a release of the patents for a 7
year contract, which each of the companies think will be beneficial
to themselves.

 
#5 Author: Anonymous at 12:17pm 02/9/2000  
Comment:
Reply to This
Nvidia + S3
----------- = OwNeD
3DFX

 
#4 Author: honold at 11:23am 12/8/2003  
Comment:
Reply to This
the big advantage i see to this deal is nvidia's utilization of s3tc
- i've seen savage2000 cards running ut's second disc, and it is
beautiful. gfddr + s3tc = :)~

 
#3 Author: Anonymous at 11:06am 02/9/2000  
Response to #2:
Reply to This
Actually that is not really how I understand a Cross-License
Agreement to work. It is more like a game of I'll show you mine if
you show me yours. It is not like S3 and nVidia are going to start
making chips together, more along the lines of sharing ideas and
technology back and forth. It is a great move for nVidia, they are
a sitting duck right now. All they do is graphics, they need and
want to expand into other areas, and a deal with S3 will help them.
I suspect that it will help S3 on the graphics end while getting
nVidia into other markets.

 
#2 Author: Aggie1999 at 04:22pm 07/11/2002  
Comment:
Reply to This
Then question is....How long will we have to wait before we see a
joint effort from these two? If the Savage2000 is as good as it is
hyped up to be then their next gen better be that much better. So I
guess we will have to wait, what 2 or 3 generations before they can
actually make a TRUE joint effort?

 
#1 Author: Dmitriy at 04:22pm 07/11/2002  
Comment:
Reply to This
The question is, are s3's chips going to be actually decent now, or
is NVDIA going to start sucking? What does NVIDIA have to gain from
S3??? The only connection that I see is that both have T&L
Engines and this might avoid lawsuits from both sides. But is that
worth it for NVIDIA in the short term at least? I mean, come on,
looking at the past chipsets (havent had a chance to use GeForce and
Savage2000 yet), TNT2 and Savage4 are sky and earth! And I am
speaking from experience (I'm a ?proud? ownder of a Savage4 card
that has given more grief to me than enjoyment).


Oh well, just a thought

Dmitriy

 
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