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Intel, AMD kiss and make up

Intel and AMD have been involved in long-standing dispute over intellectual property and antitrust issues. Intel was fined $1.45B by the EU for its anticompetitive practices and last week, New York Attorney General Andrew Cuomo filed an antitrust lawsuit against Intel.

Cuomo had rather harsh words for Intel, stating, “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market. Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”

However, Intel and AMD now appear to be making amends. The pair issued a joint statement today which reads, “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.”

As a part of the settlement, Intel will pay AMD $1.25 billion, AMD will drop all of its pending lawsuits against Intel, and the pair will enter into a new 5-year cross license agreement. In addition, Intel will "abide by a set of business practice provisions" in the future.

AMD CEO Dirk Meyer today championed the agreement, stating, "Today, I am pleased to announce the last major component of that transformation – in the form of a transparent and public agreement with Intel to create a level playing field in the x86 processor industry – taking us one big step closer to achieving our bold vision."

Meyer continued, adding, "Today marks the beginning of a new era... one that confirms that the game has changed for AMD. It is an important milestone for us, for our customers, our partners, and most important – for consumers and businesses worldwide. In addition, it represents the culmination many years of litigation and regulatory engagement."

Following the announcement, AMD shares are up 25 percent to $6.61 while Intel is up almost a percentage point to $20.05 as of 10:00 AM EST.

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RE: NY case
By Targon on 11/12/2009 11:53:56 AM , Rating: 2
Lawsuits made my government against Intel will still go on, because the anti-trust suits are intended to punish bad behavior by corporations, not to gain awards for those who were punished. Basically, if AMD went to court and won, they would get money. If NY State goes to court and wins, THEY get money, and in no case will the general public stand to gain.

Even here in New York State, if the government wins, and gets money, it won't do anything to reduce taxes, and will just end up going to friends of the politicians.

RE: NY case
By C'DaleRider on 11/12/2009 5:44:56 PM , Rating: 2
As the other articles about this state, AMD will no longer be cooperating with any gov't. entity in their lawsuits brought against Intel, so while the gov't. suits may go forward, it'll be without the help and assistance of AMD.

AMD's lack of help may go so far as to make NY, et al, subpoena them for any and all documentation to help make any case against Intel.

In the end, while the gov't cases may proceed, they'll be much more difficult to prove now, given AMD's new stance of "Everything's OK...just a gun malfunction. No problems down here. How's everything up there?"

RE: NY case
By molgenit on 11/13/2009 8:24:10 AM , Rating: 3
The case only exists as a political platform for the AG to bid for his daddy’s ex- job. He could care less and when he jumps ship to run for governor it will probably die.

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