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Intel and AMD Settle Antitrust, Patent Lawsuits

Posted by Soulskill on from the mr.-otellini-tear-down-that-wall dept.

Kohenkatz writes "Intel has agreed to pay $1.25 billion to AMD. In return, AMD will drop its lawsuits about patent and antitrust complaints. The two companies released this joint statement: '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.' The press release also says, 'Under terms of the agreement, AMD and Intel obtain patent rights from a new 5-year cross license agreement,' and that 'Intel and AMD will give up any claims of breach from the previous license agreement.'"

4 of 165 comments (clear)

  1. Only $1.25 Billion? by mantis2009 · · Score: 5, Insightful

    Seriously, this number seems low to me. The pending suits against Intel alleged that for a decade Intel conspired to freeze AMD out of the market. Intel poisoned nearly all of AMD's potential customers. Surely that cost AMD a lot more than just a billion or so dollars in lost revenue.

    1. Re:Only $1.25 Billion? by brxndxn · · Score: 5, Insightful

      As an AMD shareholder and an enthusiast who has followed this 'case' since 1999, I also think this settlement is low. I do not believe $1.25billion could bump AMD to a cash position of where it would have been if Intel had not competed unfairly. Yes, it is a $1.25billion injection of direct profits to AMD - but the cashflow through the company over the years from the marketplace to R and D would have put AMD in a much more competitive position.

      --
      --- We need more Ron Paul!
    2. Re:Only $1.25 Billion? by Moridin42 · · Score: 5, Insightful

      Except that this is 1.25 billion dollars that AMD need make no sale to acquire. No materials costs, no QC costs. No manufacturing losses. Why should AMD (or anyone else) be concerned with revenues lost? They're only a way to secure profits. This is much closer to a billion dollars of profits, which is far more valuable than a billion dollars of revenue.

      --
      I don't expect morality, equality, consistency, or justice from the law. I expect only legality.
    3. Re:Only $1.25 Billion? by TheNinjaroach · · Score: 5, Insightful

      I just hope that it means we get to see some chips from AMD that once again provide a much better performance/cost ratio than the Intel chips.

      AMD processors are still beating Intel in the performance/cost ratio. They have been falling behind Intel on performance benchmarks alone, but the cost is cheap enough to make AMD a clear winner when comparing performance and cost.

      I'm looking forward to the time where they once again provide better performance than Intel while also toting a cheaper price tag.

      --
      I went to eat some animal crackers and the box said, "Do not eat if seal is broken." I opened the box and sure enough..