PC World reports that Intel and Nvidia agree to end a long-standing patent dispute and license each other's patents.

Under the agreement, Intel will pay Nvidia US$1.5 billion, Intel said in a press release.

"This agreement ... preserves patent peace and provides protections that allow for continued freedom in product design," Doug Melamed, Intel's senior vice president and general counsel, said in a statement. "It also enables the companies to focus their efforts on innovation and the development of new, innovative products."

  Intel, Nvidia Sign $1.5 Billion Licensing Deal