Intel settles all AMD litigation with $1.25 billion pact

By on November 12, 2009, 11:19 AM
Intel and AMD have had a troubled relationship in recent years. The latter sued Intel for antitrust violations, with allegations that have been picked up by others including U.S. and European regulators, while Intel has claimed AMD violated a licensing agreement for x86 technology with its GlobalFoundries spinoff. In a surprise announcement, however, the companies revealed today that they have now put an end to all legal actions.

As part of the agreement, Intel will pay its rival the hefty sum of $1.25 billion and has agreed to abide by a set of business practice provisions. For its part, AMD will drop all pending litigation worldwide. The two companies also forged a five-year cross-licensing agreement that gives them access to each other's key chip technology, while abandoning claims of breaches under previous agreements.

Besides getting a huge chunk of cash to help offset their mounting losses, this means AMD is now free to produce all of its processors in third-party fabs. The formal agreement may additionally help Intel argue that its misbehaving days are in the past, as the company is still appealing a $1.45 billion fine from European regulators and facing an antitrust case in the U.S.

User Comments: 5

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Kibaruk Kibaruk, TechSpot Paladin, said:

A big number for a settle!

Good for AMD

oinari said:

Besides the settlement this may be a great win for processing as a whole.

Puiu Puiu said:

AMD more money from intel than they did with the Phenoms. Maybe now they will have more money to make a better chip.

j4m32 said:

Hmm, good news. Opening up doors I guess.

But, 3rd party fabs isn't necessarily good.

Quality over quantity, we do not want batches of defect products due to 3rd rate production, especially for stuff in the high end and mid range that AMD have to offer.

peas said:

Inhell is trying to look like it's a nice guy by doing this. But the damage has already been done. They need to be fined hard by the EU and US for their past anti-competitive practices.

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