S3, Intel cuddle up

Could patents be the issue?

Chip giant Intel is to buy a stake in graphics chip company S3, according to American reports. But the move, if the reports are true, are likely to enrage the Federal Trade Commission (FTC), a division of the US government. Wire Techweb today reported that Intel and S3 have entered into a 10-year cross licensing agreement. It will cover all aspects of S3's technology, the wire revealed. But S3 bought up many patents earlier this year, after a putative Apple start up fell flat on its face. Intel refused to confirm or deny the reports, although it is an obvious move for it. Third party graphics chips suppliers form a significant part of the USA versus Intel show slated to start February, latest. ®

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