Nvidia Solidifies Mobile Business, Acquiring Patents

Nvidia has teamed up with Intellectual Ventures (News - Alert) to acquire as many as 500 wireless communications patents from IPWireless, as the graphics processors maker intensifies its attempt to solidify its mobile phone business.

The patents are related to technologies used in long- term evolution, or LTE (News - Alert), as well as for 3G and 4G networks.

Neither company has disclosed the financial details of the deal.

Santa Clara, California-based Nvidia is moving beyond personal computers and is planning to develop microprocessors for phones. Nvidia is in fact reputed for chips used to create high-end graphics in desktop and notebook computers.

Icera (News - Alert), a wireless technology start-up, which Nvidia bought a year ago, is doing good these days. Two mobile phones using Icera wireless processors have hit the market recently. Nvidia says Icera would launch LTE chips next year.

Analysts say the acquisition of these many patents is in preparation to launch new products in the wireless segment.

Technology companies are needed to build their patent arsenals to protect against possible litigation, particularly in the mobile sector. Leading phone makers around the world are fighting court battles over patents.

"This acquisition complements our ownership of extensive fundamental patents in graphics, visual and mobile computing," said David Shannon, executive vice president and general counsel at Nvidia, in the statement. 

The company has more than 4,500 patents issued, allowed or filed, including ones covering ideas essential to modern computing.Ownership of the patents was split between NVIDIA (News - Alert) and IV, with NVIDIA licensing the rights to those patents that it did not acquire. As part of the acquisition, IPWireless retains perpetual, royalty-free access to these patents.

NVIDIA says the acquisition complements its ownership of patents in graphics, visual and mobile computing and will support its mobile business.

"Through this acquisition, IV was able to acquire a portfolio that is both strategic and relevant in a variety of technology areas," said Loria Yeadon, executive vice president of the Invention Investment Fund (IIF) at Intellectual Ventures.

Bellevue, Washington-based, Intellectual Ventures says it is building an active market for invention with an intention to allow buyers, sellers and inventors to realize value for their ideas.