Intel, who already has a reputation for bullying vendors and threatening competitors, has agreed to pay Advanced Micro Devices $1.3 billion US dollars to settle a series of long-running legal disputes with several insiders speculating that Intel did not want damming evidence revealed in any court cases between the two competitors.
Intel, who already has a reputation for bullying vendors and threatening competitors, has agreed to pay Advanced Micro Devices $1.3 billion US dollars to settle a series of long-running legal disputes with several insiders speculating that Intel did not want damming evidence revealed in any court cases between the two competitors.
Earlier this year, the Company was fined $1.5 Billion dollars by the European Union, after evidence was presented that Intel abused its stranglehold on the semiconductor market in an effort to try and crush AMD.
Currently facing litigation around the world, for anti competitive behaviour, bullying and bribery, the US Company who has over 80% of the PC processor market
Last week in the USA the attorney general of New York State filed an antitrust lawsuit against Intel alleging the chip giant engaged in illegal practices to dominate the market.
The Attorney General accused the company of “exacting exclusive or near-exclusive agreements from large computer makers in exchange for payments totalling billions” and threatening retaliation against firms that did not fall in line.
The companies said in a joint statement that the settlement represents “a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.”
“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,” the statement said.
AMD and Intel agreed to patent rights from a new five-year cross license agreement, and to give up any claims of breach of contract.
In addition to the payment of $1.25 billion in US dollars, 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 and will withdraw all of its regulatory complaints worldwide, the statement said.
AMD president at chief executive Dirk Meyer said the agreement seeks “to create a level playing field” in the processor industry and will move AMD “one big step closer to achieving our bold vision.”
