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Intel Pulls Out $1.25B to Settle All AMD Problems

By - Source: Tom's Hardware US | B 76 comments

Intel digs deep into its pocket once again to settle competition with AMD.

In what could be one of the closing chapters in a long-lasting saga, Intel Corporation and Advanced Micro Devices today announced a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.

In a joint statement, the two companies commented, "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."

Under terms of the agreement:

-          AMD and Intel obtain patent rights from a new 5-year cross license agreement

-          Intel and AMD will give up any claims of breach from the previous license agreement

-          Intel will pay AMD $1.25 billion.

-          Intel agrees to abide by a set of business practice provisions.

As a result, AMD will drop all pending litigation including the case in U.S. District Court in Delaware and two cases pending in Japan. AMD will also withdraw all of its regulatory complaints worldwide. The agreement will be made public in filings with the Securities and Exchange Commission.

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Top Comments
  • 40 Hide
    Jazzmain , November 12, 2009 4:27 PM
    Hell has frozen over.
  • 30 Hide
    nforce4max , November 12, 2009 4:29 PM
    jazzmainHell has frozen over.


    Let it snow let it snow.
  • 25 Hide
    skora , November 12, 2009 4:33 PM
    Maybe this is from the Yes Men.

    How much of the 1.25b is left after AMD has to pay their lawyers?
Other Comments
    Display all 76 comments.
  • 40 Hide
    Jazzmain , November 12, 2009 4:27 PM
    Hell has frozen over.
  • 30 Hide
    nforce4max , November 12, 2009 4:29 PM
    jazzmainHell has frozen over.


    Let it snow let it snow.
  • 13 Hide
    datawrecker , November 12, 2009 4:30 PM
    *Throws a snowball @jazzmain*
  • 4 Hide
    bige420 , November 12, 2009 4:32 PM
    So by "5-year cross license agreement" does that mean AMD has access to all Intel's patents and whatnot?
  • 20 Hide
    tri5cui7 , November 12, 2009 4:33 PM
    This is interesting! I wonder if they'll use any of that money for a tour of Bill Gates house...
  • 25 Hide
    skora , November 12, 2009 4:33 PM
    Maybe this is from the Yes Men.

    How much of the 1.25b is left after AMD has to pay their lawyers?
  • 18 Hide
    ssalim , November 12, 2009 4:34 PM
    Money. The problem -and- the solution to all life's problems.
    -Homer (except he said Beer)
  • 21 Hide
    Anonymous , November 12, 2009 4:35 PM
    "AMD will also withdraw all of its regulatory complaints worldwide."

    So does this mean that Intel is off the hook for all the anti-competitive crap they've been getting in trouble with over the last year or so... If so, $1.25 billion sounds on the light side... didn't they give Dell $6 billion over a period of 5 years?
  • 10 Hide
    jerther , November 12, 2009 4:36 PM
    Poor lawers behind all that... They can kiss their christmast bonus goodbye

    :p 
  • 14 Hide
    bunz_of_steel , November 12, 2009 4:38 PM
    Should have been more than 1.25 billion because Intel kept AMD from making potential financial gains. And AMD would be in much better position to compete in the market during this recession .... that were still in.
  • 7 Hide
    robwright , November 12, 2009 4:39 PM
    So who won? Did AMD get the better end of the deal? I doubt Intel would have settled like this if it hadn't been getting pressured by the EU, Korea, and New York.
  • 12 Hide
    hillarymakesmecry , November 12, 2009 4:40 PM
    AMD could have gotten a LOT more. I'd have given them 10 billion if I were on a jury. Nice move Intel.
  • 9 Hide
    wildwell , November 12, 2009 4:42 PM
    If this was the quickie settlement, I wonder how much Intel would stand to owe AMD if all of the legal disputes were allowed to play out over the years!
  • 4 Hide
    SAL-e , November 12, 2009 4:50 PM
    We will be back here in 4 years once the new patent cross license agreement is due to expire. Until then prepare to pay higher prices on CPUs. Intel will recover $1.25B from you and AMD will enjoy the higher prices also.
  • 8 Hide
    hellwig , November 12, 2009 4:50 PM
    I guess this means all that B.S. about GlobalFoundries not having permission to produce x86 chips is gone too. I can't believe AMD settled for so little. According to another article I read, they still have over $3-billion in debt, this doesn't even cover half that.

    And I agree clemaaron. Intel paid dell $6-billion to not sell AMD chips, but now AMD gets only $1.25 billion as an "oops, our bad" apology? Maybe the figure was reduced because AMD admitted some fault of their own.

    Don't know. Either way, we have 5 years until more dirt turns up on Intel and they go into another "everything belongs to us" tirade against their competitors.

    In the meantime, I'm going to wait and see how much they end up paying Nvidia to settle those claims.
  • 6 Hide
    WheelsOfConfusion , November 12, 2009 4:50 PM
    bige420So by "5-year cross license agreement" does that mean AMD has access to all Intel's patents and whatnot?

    Probably not ALL of them, but enough that, for example, Intel can't sue AMD for using x86 and AMD can't sue Intel for using x86-64.
  • 3 Hide
    yang , November 12, 2009 4:52 PM
    I sure would like to be the lawyer who took a percentage cut out of the 1.25 billion dollars.
  • 0 Hide
    tpi2007 , November 12, 2009 4:52 PM
    There is an additional information that isn't made clear in this article, and a very important one, I might say: AMD is now able to go completely fabless, and even to the length of being able to choose where to produce it's chips, it doesn't have to be only Globalfoundries. Anandtech has more information on it.
  • 10 Hide
    Honis , November 12, 2009 4:53 PM
    This wont stop "over" zealous prosecuting attorneys from charging Intel with Antitrust lawsuits. It's a win-win for AMD.
  • 2 Hide
    jonpaul37 , November 12, 2009 4:56 PM
    bige420So by "5-year cross license agreement" does that mean AMD has access to all Intel's patents and whatnot?


    no details yet in the cross-license agreement, but hopefully it's a nice smooth transition so BOTH companies can get back to work and actually compete fairly.
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