Intel settles AMD court case, pays $1.25 billion

Written by Alex Watson

November 12, 2009 | 15:22

Tags: #court-case #cross-license #fine

Companies: #amd #intel

Intel versus AMD is one of the tech world’s longest running rivalries, and it came to head in 2005 with AMD taking Intel to court, alleging that Intel has been involved in vigorous and vicious anti-competitive practices.

Today the two chip companies announced an out-of-court settlement to this case and all other outstanding legal issues existing between them.

They issued a joint statement saying: "while the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development."

As well as clearing up their legal disputes, the two companies will enter into a new five year long cross license agreement, sharing technology with each other. Intel will also pay AMD $1.25 billion, and has “agreed to abide by a set of business practice provisions.”

On his blog, Nigel Dessau, AMD's Senior Vice President and Chief Marketing Officer lists these provisions. They include [not] "offering inducements to customers in exchange for their agreement to limit or delay their purchase of microprocessors from AMD."

In return, AMD is dropping its court cases in the US and Japan, and also agrees to “withdraw all of its regulatory complaints worldwide” – these being the complaints that spurred various regulatory bodies to investigate Intel and in many cases, impose significant fines.

Considering the EU fined Intel $1.45 billion and that the State of New York recently filed suit against Intel for its hostility to AMD, $1.25 billion to call it quits and to share technology sounds like a good deal. Glad the fight is over? Or do you think AMD should have had its day in court? Let us know your thoughts in the forum.
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