Intel voices concerns over AMD spin-off
By Justin Mann, TechSpot.com
Published: October 8, 2008, 9:42 AM EST
Even though AMD’s move to sell off their manufacturing assets has been seen by many as a good move for the company, it may not be a smooth transition. Only hours after the announcement, Intel stepped in to say that they are concerned about what AMD has done.
The issue that Intel apparently has is with the cross-licensing that the two companies share. Primarily, AMD is heavily invested in cross-licenses from Intel, which allow them to manufacture processors based on the X86 instruction set, among other technologies that Intel originally created (such as MMX). According to Intel, AMD doesn't have the right to sell those licenses – and thus can't have a third party manufacturing their hardware.
This could prove to be an interesting kink in this developing story, especially if Intel tries to get involved and stop AMD from executing this plan.
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Reply to outlw6669
Intel is also invested in cross licensing from AMD. It will be interesting to see how it all pans out legally, and there's no reason to be fanboyish about it. Any company tries to gain market share lawfully. Competition is about products, but also patents and licenses.
I'm quite sure if the roles were reversed, that the same questions would be raised. It's all a matter for the trier of fact if this ever goes to court, but will probably be worked out in negotiations involving cross licensing. It certainly won't be settled by AMD and Intel fanboys on message boards.
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Reply to yipsl
To the OP, it is Intels right to make sure that this does not violate the agreement. TBH it sounds as if it could because AMD will be giving this new company that will be 50% owned (if not more) by a another company (Abu Dhabi actually). Thus giving them access to it is sort of like giving it away when its not AMDs to give away.
Yips is right though. If it was the other way around, AMD would do the same thing in a heartbeat.
To the OP, it is Intels right to make sure that this does not violate the agreement. TBH it sounds as if it could because AMD will be giving this new company that will be 50% owned (if not more) by a another company (Abu Dhabi actually). Thus giving them access to it is sort of like giving it away when its not AMDs to give away.
Yips is right though. If it was the other way around, AMD would do the same thing in a heartbeat.
Unfortunately x86-64 (AMD64) is AMD's to give away. So is their manufacturing process that is almost completely different than Intels.
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Reply to Mathos
Its Intels right and their responsibility to do this. If they didnt, it would be irresponsible. How hard they push it is where itll play in court, if it ever gets there. Im sure whichever judge presides over this will make sure its on the up and up, and theres nothing Intel nor AMD can do about it.
Its possible Intel could get slapped for being too aggressive, but just like AMD, Intel also knows the score
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Reply to jaydeejohn
So if AMD breaks the contract, it is Intel's fault?
Please explain.
If the contract says that AMD must manufacture XX% of chips and AMD no longer does, it is only AMD's fault. Intel did not force AMD to break the contract.
I don't want to see a monopoly, but an asset-lite strategy may not be compatible with the cross-license agreement.
I'd also wait and see which X86 process will be used (X86-64 is AMD's) X86-16 is public domain (I think the X86-32 is nearing the end of it's patent as well). Also the Manufacturing process may be different, however the IP's and assorted codes (MMX, and SSE) still belong to Microshaft.
*Edit* another strategy would be for AMD to controll 50.1% instead of the 44.4%, giving them majority share in the manufacturing process. In effect nullifying the issue as they will have controll anyway.
Message edited by IH8U on 10-10-2008 at 04:00:42 PM
If a judge finds that according to precednce and or understanding of the license agreement, that AMD is fine, but Intel gets too aggressive, Intel could face a fine from the judge. Intel could try to turn certain things public, they could try hitting it from a 1,000 different angles, and if the judge deems it necessary to warn and then to fine Intel he will. Theres lots of things Intel could do under the circumstances, that a judge could find fault with.
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Reply to jaydeejohn
It's simple, gentleman: Both companies, (as well as others), strive to create and drive industry standards. When one "wins" a particular standard and the industry adopts it in a widespread manner (x86 for Intel, X86~64 for AMD), then the other guy ends up licencing it in order to continue to compete. It doesn't take a rocket scientist to understand that this stuff is not transferable to 3rd parties. Especially when you consider the dollar values associated with these technologies.
Make no bones about it - Intel have a financial interest from the licencing revenues derived from their technologies. This statement puts all parties on notice that Intel are paying attention. No more, no less. At the end of the day, the appropriate monies will change hands, and it will be business as usual. Indeed - This entire process *is* business as usual.
But no... Here at Toms we are apparently obligated to populate our posts with asinine childish partisan bullsh*t. Therefore simple statements over licencing rights somehow get turned into accusations of monopoly. I swear, the amount of drama generated over nothing is worse than Jr High School.... and apparently less educated to boot.
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Reply to Scotteq
Exactly. If Intel didnt do this, Id be more wary about it heheh
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Reply to jaydeejohn
But no... Here at Toms we are apparently obligated to populate our posts with asinine childish partisan bullsh*t. Therefore simple statements over licencing rights somehow get turned into accusations of monopoly. I swear, the amount of drama generated over nothing is worse than Jr High School.... and apparently less educated to boot
agreed
Their just a little cranky because they never made it with a girl and they had a late puberty. so they just get into their little fits and create arguments on the forums. lol
jk
... Maybe its just me, but it seems like their just trying to keep their spot on top, because after AMD beat NVIDIA, they're scared, and they have every right to do what they are doing, its not monopolistic, if it were, they would stop licensing their technology to AMD
I doubt Intel is scared right now. Are they doing everything they can to stay on top? Yes, but they are also succeeding rather spectacularly right now.
I doubt Intel is scared right now. Are they doing everything they can to stay on top? Yes, but they are also succeeding rather spectacularly right now.
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