Friday, November 13, 2009

AMD, Intel settle all disputes! What a relief!!

The big news: Intel and AMD announced a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes! What a relief!

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.”

As per the agreement the two companies obtain patent rights from a new five-year cross license agreement, Intel and AMD will give up any claims of breach from the previous license agreement, and Intel will pay AMD $1.25 billion. Intel has also agreed to abide by a set of business practice provisions.

AMD will drop all pending litigation including the case in US District Court in Delaware and two cases pending in Japan. AMD will also withdraw all of its regulatory complaints worldwide.

Ramkumar Subramanian, VP, Sales & Marketing, AMD India, said: “This is a historical settlement for the microprocessor industry. The settlement will set transparent ground rules for open, competitive markets, with which Intel, in full public view, has agreed to comply. Fair and open competition dictates that the best product wins and market forces prevail. I am very confident that this development will help us strengthen our market position.”

This is just the kind of news the global semiconductor industry needs! It is hopefully, on path of a major recovery after having faced the worst recession.

It is heartening to note that the two rivals have buried the hatchet and shaken hands — a plea I’ve been making via my blog posts for such a long time.

It would do both Intel and AMD a world of good to focus on their core competencies and continue to produce all of those magnificent chips that make all of our lives so easy and meaningful!

Good work guys and congratulations. May you have all the success and lead the global semiconductor industry to greater heights in the future.

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