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AMD claims fab deal doesn't violate Intel's patents

Posted on Thursday, October 09 2008 @ 00:43:56 CEST by

Intel announced yesterday it has serious questions about the deal AMD made to spin off its fabs as it may violate Intel's intellectual property, but according to an AMD spokesman that isn't the case:
“We are completely confident the structure of this transaction takes into account our cross-license agreements,” Phil Hughes, an AMD spokesman, wrote in an email. “Rest assured – we plan to continue respecting Intel’s intellectual property rights, just as we expect them to respect ours.”

Intel spokesman Chuck Mulloy told eWEEK that the company will defend its chip patents against any violations and Intel continues to review its options. Mulloy added that Intel wants AMD to publish a full version of the licensing agreement – a redacted copy is available – as the deal to create the new foundry company unfolds. (The two companies have been signing licensing agreements with each other since the mid-1970s.)

In AMD defense, Hughes said the agreement between the two chip makers is a business transaction and any publication of that agreement or other disputes related to licensing are a matter for both companies’ attorneys at this point.

“It’s a business documents and we are not going to negotiate this in the press or the media,” said Hughes. “This is something that the lawyers have to work out.”
However, financial analyst Hans Mosesmann, who works with Raymond James, believes AMD is likely violating the cross-licensing agreement and he sees this as a nice opportunity for Intel to make AMD drop its antitrust lawsuit against the company:
The dispute might also create some leverage for Intel going forward, writes Hans Mosesmann, a financial analyst with Raymond James. Intel could use this issue to make AMD drop its long-standing lawsuit against the company.

“AMD, in our view, is likely violating the Intel x86 cross-license, but we suspect Intel may look the other way as it benefits Intel to have an AMD that will over time have increasing variable costs (good for ASPs),” Mosesmann wrote in an Oct. 7 research note. “Intel may choose to entice AMD to drop the anti-trust suits against Intel in return for this altruistic gesture (true realpolitik policy at play here).”



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