Intel settles AMD court case, pays $1.25 billion
Intel and AMD have also signed a five year technology cross licensing agreement
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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Discuss in the forums Replycant wait to see what this brings in for AMD
You mean Bulldozer. ;)
This is good in more ways than one. It gives a large sum of cash that AMD desperately needs, sorts out the cross-license agreement that has been causing both companies issues over the last few years and basically means Intel has admitted to playing foul, with them agreeing to play by the rules now.
Still, theres more hurt to come for Intel. The NY attorney case and possible FTC probe are gonna cost them potentially more billions....
Don't waist it!
Its going to take a while before we as consumers notice the effect of this, and they could have sped that process up had they not been so lenient.
No link to this thread in the article.
Exactly, but I think AMD was probably pressing for a settlement. We all know that AMD is not exactly in a good way, so they may have been more interested in getting some significant cash on hand rather than really hurting Intel. The fact that the regulatory agencies around the world don't have to stop their investigations is probably something else that AMD is relying on.
Link to the text of the agreement (if public), link to Intel and AMDs press release about the issue?
To be quite frank, I can't stand the idea that you just say "sue" and end up with billion dollar "agreements." If the other company is doing a better job than you are, that's life. To call a marketing campaign into question because it shows your product in a bad light is flat silly. That's what marketing campaigns are. People still make their own choice in the end.
Now, I'll assume for the moment that Intel was performing mafia-esque "protection services" to somehow fandangle AMD's clientele. I think this agreement in the end was fair in that case. But I'm still not a proponent of crying, yelling "foul", and hoping a lawyer will clean your mess.
I really think this will hurt intel as I know a lot of people will feel very negatively about what they tried to do to AMD. We can't blame the guys in the research and development labs at Intel as I'm sure they knew very little about the corporate stuff but I'm sure they feel negatively about what their company has been up to.
I'm just surprised that intel could behave in this duplicitous way. It's like the Mafia are running Intel. WTF?>
The anti business practices were real.
Back in the hey day when AMD processors actually DID compete with Intel on both performance and price. Intel strong armed the personal computer market by threatening to withhold bulk pricing oh delay shipments if they also purchased AMD chips. This meant that makers like DELL, IBM, HP etc had to essentially boycott AMD or they wouldn't be competitive.
This isn't sour grapes, or losing a fair fight. Intel had the capital and market share to stiff arm the market.
http://news.cnet.com/AMD-files-antitrust-suit-against-Intel/2100-1001_3-5765844.html
more reading on the subject.
I've used both chip makers I no allegiance to either one as long as they make good chips, but fair is fair.
Sorry... Pulled out the soap box for a moment.
I do remember that, and had forgotten it when posting my rant. Thanks for the reminder.
*clearly sarcasm*
Cheers.
I don't think the majority of americans have a problem with capitalism but lessez faire capitalism. In which intel would of been able to do this with impunity. Capitalism can and does breed innovation and competition. But it also can breed greed and corruption, such as in this case where intel was willing to play dirty to force companies to boycott AMD
Aye emagine u wood haf two evest aloht.
I think the words you were looking for were imagine and invest, and yes your point is valid, a one day 20% increase would be great. The folks at the SEC would probably visit you if you had moved all your money into one stock.
Using Firefox as a browser is a good idea for many reason, but it has online spell checking, the words appear with a red line under them, you right click and the word list is there for you. It is also a much more secure browser than Internut Exploder 8.
Cheers,
S¤D
All this has done is put the AMD share price back to May 08 prices which is still 83.25% DOWN on it's market height 4 years ago. This drops into that huge hole in their balance sheet like that Arab dude at the beginning of 300! Unfortunately, AMD don't have enough people to bring lawsuits against to fill it completely or the product base to help them stop the hole getting bigger.
No blue sky yet I'm afraid ladys whilst for Intel, it's just loose change down the back of their sofa.
:D
"Even with this money and agreement with Intel, you just know they are still going to f*&k thing's up!"
Wellll, THIS kind of money, buys you about 1/4 of a Fab...(yes I know AMD has shoved it's Fabs up some saudi's A**) What I mean is, it's not as much money as you'd think it is.