Intel and AMD settle all antitrust and IP disputes

 

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Posted on 12 Nov 2009 at 16:24

Intel and AMD have agreed to settle all of their antitrust and intellectual property disputes in what was one of the longest rivalries in the tech world.

The two firms have announced an out of court settlement to the case that AMD filed in the state of Delaware in 2005. Intel has agreed to pay AMD $1.25bn (around £750m) in exchange for AMD withdrawing all of its regulatory complaints worldwide.

The agreement also covers all other outstanding legal disputes existing between the two companies, which include the status of the companies' cross licence agreement following AMD's decision to spin off its manufacturing business into Global Foundries. The two archrivals have signed a new five-year cross licensing agreement which addresses this point specifically and enables the two companies to start sharing technology again.

In a joint statement, the two firms said that "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 our efforts on product innovation and development".

Intel and AMD have established an important set of Business Practice Provisions which Intel agrees to adhere to. AMD CEO Dirk Meyer said that he hopes they "will define the path to a free and open market in the microprocessor industry".

Nigel Dessau, AMD's chief marketing officer, went into more detail on this set of ground rules on his blog. They prohibit Intel from offering inducements to customers in exchange for their agreement to buy all of their CPUs from Intel, to limit or delay their purchase of CPUs from AMD as well as no longer enticing customers to limit their engagement or participation in AMD's activities.

The agreement also stops Intel from withholding any benefits or threatening retaliation against any manufacturer who refuses to enter into an illegal agreement.

One has to wonder what this means for the recent New York State Governor's filing and the ongoing investigation from the FTC. Considering the EU fined Intel $1.45bn (around £870m), it looks like a pretty good deal for Intel, but we'll have to see whether New York State Governor Andrew Cuomo withdraws his complaint.

Author: Tim Smalley