Intel has publicly threatened to AMD

March 17, 2009, 11:12 am

   In October last year, happened the most important industry event for the processor - AMD formally announced the establishment of a new company, Foundry Company, whose main task is the production of semiconductor devices. AMD has become a partner of an Arab company from Abu Dhabi Advanced Technology Investment Company (ATIC). The formation of this alliance has подпортило AMD relationship with Intel, which began to fear for their intellectual property.
After unsuccessful long correspondence with his rival, stretch for several months, the company decided to Intel tougher action to publicly and formally announced that, in her opinion, AMD has violated signed in 2001, cross-licensing. According to Intel, GLOBALFOUNDRIES (namely the so-called Foundry Company from the second in March 2009) is not an affiliated company of AMD and, thus, may not be a party signed between Intel and AMD a license agreement.
Also, Intel said that the structure of the deal between AMD and ATIC violating the confidential part of the agreement, and the request to make it public was refused. This behavior AMD, in the opinion of Intel, could lead to the loss of licenses and rights referred to the red-green camp in the cross-license agreement.
Senior chipmeyker sure that AMD can not unilaterally transfer data to license rights to third parties without the consent of Intel. According to Bruce Syuvella (Bruce Sewell), Senior Vice President and General Counsel of Intel, the company tried another from October to find a solution and wants a peace treaty with AMD, but on the other hand Intel also has an obligation to shareholders to preserve billions of dollars invested in intellectual property.
In accordance with the terms of the contract, the notice AMD means that the parties must continue to try to resolve the dispute through negotiations with the participation of an independent mediator. In response to the notification, AMD accused Intel in that it has violated the terms of the agreement by the notice (sorry for the pun). In turn, Intel believes that its choice of solution to the conflict in line with the terms of the contract and the position of AMD is not adequate to the situation.
Of course, without detailed knowledge of the contract and a good legal podkovannosti us mere mortals is difficult to figure out who is right and who`s at fault in these complex confrontation. With interest we will monitor future developments. If the parties do not agree and the case comes to court, Intel may request to suspend the production of chips AMD.


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