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AMD and Intel settle out of court

AMD and Intel settle out of court

We have just been informed that AMD and Intel have announced a shock settlement on both the IP disputes and the pending antitrust suit. Intel have paid out over a billion dollars in damages – This agreement will be made public in Securities and Exchange Commission (SEC) filings.

This agreement between both companies settles all outstanding legal disputes between the two CPU giants and most importantly AMD’s case against Intel in Delaware over the antitrust as well as Intel’s dispute of a patent cross license.

A joint statement issued by both firms states “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.”

This agreement means that both Intel and AMD are allowed patent rights from a newly constructed cross license agreement over a five year period. The $1.25 billion payout by Intel in payments to AMD is a nice ‘end of the year’ bonus and Intel have also agreed to abide by a set of business practice guidelines to try and keep the firm in check in the future. AMD drop all pending litigation cases against Intel, including those in Japan.

We are glad to see this over now and hopefully Intel will play fair in the future and ensure that both companies can make a profit and deliver competitive products into the marketplace.

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Stuart Davidson

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