- Tuesday, 9 February 2010
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Look wise, say nothing, and grunt. Speech was given to conceal thought - Sir William Osler
Intel and AMD reach a settlement
INTEL AND AMD are due to announce this afternoon that they've settled their legal disagreements, including all antitrust litigation and patent cross licensing arguments.
As predicted yesterday by analyst Tim Luke, the two will shake hands and go forward as competitors once Intel pays Chipzilla $1.25 billion. Intel has also agreed to play by a set of business practice rules.
Under the settlement both companies will acquire reciprocal patent rights from a new five-year cross licensing agreement. Intel and AMD will both give up any claims of breach from the previous licensing agreement.
In a joint statement the two companies said, "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."
More details on whether this cancels the dispute regarding Global Foundries' x86 chip licensing status will be available after the announcement. µ
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I wanted to see Intel get a bigger smacking then that.. 1.5 billion... bah!
at least i hope AMD gets enough breathing room to produce another socket 939-style leap in the processor market..
competition is in OUR best interests people!
"ntel pay chipzilla"? To me, all these years, chipzilla was intel itself. Did you mean chimpzilla? That's the moniker to AMD.
Probably includes a deal to screw team Green into oblivion!
Although I would like their legal definition of "play fair"!
half of AMD's debt.
Hector, Hector!
I'm kind of stunned, though I don't know why. This deal seems to be in the best interests of both parties. Both of them could have really screwed each other over with these patent issues. It would have been nice if AMD had gotten more than $1.25 billion. Then again, that's a lot of dough for a fabless company!
Good for AMD, finally some justice. Let's hope this makes for a healthier market for both to compete in. I don't want to see AMD or Intel disappear, they both need to survive in order for innovation to continue.
That $1.25 Billion will go a long way towards bringing AMD back.
Gee, I hope they spend that money better than I did. Intel must think they're so far ahead of AMD that this much compensation won't make a lot of difference.
$1.25 billion isn't even a slap on the wrist for Intel's crimes. Once again crime pays big for Intel.
$1.25B is peanuts for them - they paid Dell $6B for not using AMD chips (http://www.theinquirer.net/inquirer/news/1561249/intel-accused-bribery-coercion). Since the early 2000's, they managed by their unfair and criminal behavior to drive AMD CPU business to the back seat, and during the last couple of years they pulled so much ahead, that the AMD's CPU business is now relegated only to niche markets or to a small percentage of the mainstream market.
It looks like the NVIDIA cartoonists were right after all. Otellini "made a microprocessor offer" which AMD couldn't refuse...
MONEY IS ONE THING, HOWEVER THE LICENSE TO PRINT MONEY IS -THE- THING.
should have been chimpzilla. if you're going to mock, get it right.
More than shocked actually. But in light of it, i will say this as an observation:
1.25 billion is small *BUT* the value of the new cross licencing agreement could be worth considerably more depending on how favorable it is to AMD and it's ability to have other FABs make the chips without issues or paten infringment worries.
Really, I never expected AMD to go for a settlement. Still, a billion dollars to spend on r&d ought to make nice, but I agree with other commenters that the interesting bit is the license agreement. Be cool if AMD got competitive again, Intel without competition is a horrible scenario.
While the 1 1/4 billion is peanuts, the real news is the 5 year cross licensing agreement. If AMD had continued Intel would have cancelled or at least stalled the current agreement, tied it up in court and slowly strangled AMD that way. More than one way to skin a cat. This way, they pay out to keep a competitor that is not very competitive thus avoiding all sorts of regulatory scrutiny. 5 years is a long time in the chip building business, so who knows what will happen. Stay tuned folks.
Will this stop the case that was recently started by New York against Intel?
Actually this deal is better than all the anti-trust cases because the money actually goes to AMD. If only the money EU extracted from Intel had also gone to AMD.
Here's hoping AMD bring back real competition to the CPU market.
Mike Just Came out with On Going UPDATE here:
http://www.tgdaily.com/business-and-law-features/44640-intel-settles-antitrust-dispute-with-amd
Its' DEFINEATELY One Billion Two Hundred fifie Million USD.
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