The new agreement will permit ATI to integrate its Radeon graphics technology into chip sets for Intel's central processors, said Dave Orton, president and chief operating officer at the Markham, Ontario-based company.

For Intel, the cross-licensing agreement "will enhance our efforts to deliver products to customers who are interested in streaming content, playing interactive games, encoding video or creating Internet content," said Louis Burns, vice president and general manager of Intel's Desktop Platform Group.