Intel to pay AMD $1.25 billion settlement as the companies make peace
Advanced Micro Devices (AMD) is going to receive $1.25 billion from Intel within the next thirty days, bringing to a close all litigation between the two companies.
After a lengthy battle between Intel and AMD, the two biggest microprocessor companies in the world, the end of their fight was announced today. AMD had filed multiple suits against Intel over the past few years for antitrust accusations and patent infringement. These fights had gotten so bad that it had brought Intel into the sights of the European Union for investigation.
According to a statement by AMD, the settlement reached between the companies sees Intel paying AMD $1.25 billion within the next 30 days, and then both companies will enjoy a new 5-year cross license agreement over the disputed patents. The deal also calls for AMD to withdraw all litigation against Intel in the U.S.A., two cases in Japan and other miscellaneous cases around the globe.
In a joint statement issued by the companies, both 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.”
Also included in the agreement is a stipulation that Intel will abide by some “business practice provisions”, but what exactly those may be is not made clear. The statements from both companies do say that more information will be made available when the filings over the cases are made with the Securities and Exchanges Commission (SEC).
Intel has long been criticized for bullying tactics against AMD from its vantage point as the market leader for microprocessors used in home computers. With the companies having now settled all of the litigation pending against one another, hopefully both can get back to the business of advancing the technology, and not spending all of that time, money and energy in court.
Related Posts:
