Intel Pays AMD $1.25 Billion To End All Antitrust and IP Disputes

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News Posted: Thu, Nov 12 2009 10:11 AM
AMD and Intel haven't been the best of friends over the years. Like any true rivalry, the two have seen things differently for about as long as we can remember, and today things have seemingly come to a head. Way back in 2005, AMD filed an antitrust case against Intel for their anti-competitive actions in the processor market. Of course, that's not the only battle the two outfits have seen in court, and it looks as if Intel is just tired of paying its lawyers as this whole debate draws out.

Today, the two companies are announcing that "all" antitrust and IP disputes between the two are done and over with. Just like that. The reason? Intel has agreed to pay AMD a staggering $1.25 billion dollars, and while we've heard that money won't buy happiness, it obviously solves major legal problems with ease. According to AMD's release, the two have "announced a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes." That sounds pretty clear-cut to us, and in some weird way, we're a little sad that this battle is over. What will the world do with AMD and Intel not punching each other in front of a judge? Here is the full announcement from both companies:



AMD and Intel Announce Settlement of All Antitrust and IP Disputes

SUNNYVALE/SANTA CLARA, Calif. --11/12/2009 

Intel Corporation and Advanced Micro Devices (NYSE: AMD) todayannounced a comprehensive agreement to end all outstanding legaldisputes between the companies, including antitrust litigation andpatent cross license disputes.

In a joint statement the two companies commented, "While therelationship between the two companies has been difficult in the past,this agreement ends the legal disputes and enables the companies tofocus all of our efforts on product innovation and development."

Under terms of the agreement, AMD and Intel obtain patent rightsfrom a new 5-year cross license agreement, Intel and AMD will give upany claims of breach from the previous license agreement, and Intelwill pay AMD $1.25 billion. Intel has also agreed to abide by a set ofbusiness practice provisions. As a result, AMD will drop all pendinglitigation including the case in U.S. District Court in Delaware andtwo cases pending in Japan. AMD will also withdraw all of itsregulatory complaints worldwide. The agreement will be made public infilings with the Securities and Exchange Commission.

About AMD

Advanced Micro Devices (NYSE: AMD) is an innovative technologycompany dedicated to collaborating with customers and technologypartners to ignite the next generation of computing and graphicssolutions at work, home and play. For more information, visit http://www.amd.com.

About Intel

Intel (NASDAQ: INTC), the world leader in silicon innovation,develops technologies, products and initiatives to continually advancehow people work and live. Additional information about Intel isavailable at www.intel.com/pressroom and blogs.intel.com.


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rapid1 replied on Thu, Nov 12 2009 12:18 PM

Interesting; one think I have never understood is the bickering amongst companies like these two. They are like At&t and Verizon. Whereas AMD and Verizon both started out as partners or co-developers of a certain technology.

Therefore both have gained from each other almost as much in one case or another to a degree that neither would exist without the other. AMD through being brought out of the dark coming up with and making the basic backbone for the IT world that exists today. Of course Intel has as well. The biggest point is that at the foundational side of cpu and many other things it was done together, and could not have been done at that time by either company without the other.

This is the basic truth of the matter and is pretty much indisputable. So both of them have bickered like old best friends that are no longer friends because of a woman. So I am glad to see they basically settled (for now anyway) there issues

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3vi1 replied on Thu, Nov 12 2009 12:58 PM

What did AMD gain from Intel?

Intel tried to run AMD out of the CPU business by leveraging their chipset monopoly: penalizing vendors who sold both Intel and AMD products.

This isn't about bickering. This settlement is Intel's acknowledgment that they were engaged in anti-competitive business practices. It's just less damning to their stock price to pay AMD off now than have a court order them to do so later.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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Jeremy replied on Thu, Nov 12 2009 2:02 PM

"Intel has also agreed to abide by a set of business practice provisions."

That's the part that interests me. Does this mean Intel has agreed to not give rebates or preferential treatment to vendors who only sell Intel? Does anybody have any details on that part?

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3vi1 replied on Thu, Nov 12 2009 2:10 PM

It means they've agreed not to penalize vendors who don't exclusively sell Intel CPUs.

Intel's not going to suddenly raise prices on OEMs, and give AMD an even better position.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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3vi1:
This isn't about bickering. This settlement is Intel's acknowledgment that they were engaged in anti-competitive business practices. It's just less damning to their stock price to pay AMD off now than have a court order them to do so later.

Amen to that. Cheers!Beer


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How many Ivy league lawyers does $1.25 billion buy? Not enough for Intel.

Agree completely, Intel paid up and not can expect to see a nice bump in its stock price. Now will this stop them from not using ant-competitive practices in the future?

Anyway, all this IP crap is holding back development, I would love to see some changes made to IP law.

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3vi1 replied on Fri, Nov 13 2009 10:52 AM

I can't agree enough about imaginary property.

This appears to have given AMD a shot in the arm (their stock jumped a dollar). Let's hope they use that money on production and R&D, and that Intel concentrates on tech instead of marketing deals to keep pace. This could be the start of a great time for we the consumer.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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I can't help but think AMD should have gotten more.  Intel utterly forced the competition away from ATi during the Athlon 64's peak days despite the Athlons being superior products.  Did they only lose $1.25 during that time frame?

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