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Intel & AMD Settle Dispute

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Huge legal battles can be solved with ever greater amounts of money. Who knew?

Intel has finally settled with AMD this week by shelling out a massive $1.25bn. The pay-out covers all contested intellectual property and anti-trust litigation and surprisingly sees the two sign a five year cross licensing agreement. Intel has also "agreed to abide by a set of business practice provisions" and got a slapped wrist. Competition regulators in Asia, Europe and the US were all involved in the mammoth case.

Both companies have issued an identically worded statement in which they 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."

AMD shares have jumped by 23 per cent on the news and the company will be looking to kick on from here after CEO Dirk Meyer said the ruling brought it "one big step closer to achieving our bold vision". Which is presumably not to lose millions of dollars every quarter and produce competitive CPUs once again.

Still, I doubt this will be quite the game changer general reaction seems to be claiming. Intel holds a monstrous market share advantage and would have spent $2.9bn this quarter alone (now $4.2bn), but shared IP could lead to some interesting developments.

So Intel and AMD are now friends. At least for five years and one nanosecond...

Link:
Intel Press Release
AMD Press Release

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