Graphics chipmaker Nvidia entered into a debate with Intel. The former alleges that it has the authority to manufacture chipsets that work with Intel's next generation microprocessors according to the 2004 agreement.

Intel, however, accused Nvidia of overstepping the jurisdiction of the agreement which does not extend upto the next generation Nehalem microprocessors. Intel has sought the intervention of the court to resolve a licensing dispute with Nvidia over the latter's plan to build chipsets compatible with Intel's latest Nehalem processors.

Earlier Intel had been holding discussions with Nvidia for more than a year attempting to resolve the matter. Since the talks could not bear result, Intel had to seek the help of the court, said Intel spokesman Chuck Mulloy.

Intel has urged the court to stop Nvidia from telling customers that it has the right to produce chipsets compatible with the next-generation chips.

Nvidia on the other hand argues that its Ion technology, for instance, enables a two-chip PC architecture that would use both Intel's CPU (central processing unit) and Nvidia's GPU (graphics processing unit).Nvidia says that would allow better performance. The company also revealed that its shipments are not being affected by Intel's allegations.