Posted on Friday, January 23 2009 @ 0:08 CET by Thomas De Maesschalck
The fourth quarter 2008 earnings report AMD filed with the SEC today reveals the chip firm received a letter from Intel this week regarding the patent cross-license agreement between the two firms. Intel requests a meeting with AMD to discuss three potential breaches of the cross-license agreement. It involves the transaction establishing The Foundry Company, whether The Foundry Company qualifies as a licensed subsidiary and also the 2006 acquisition of ATI.
On January 20, 2009 the Company received a letter from Intel Corporation (“Intel”) relating to the 1976 and 2001 Patent Cross License Agreement between the Company and Intel (the “Cross-Licenses”). In the letter, Intel requests a meeting with the Company to discuss whether The Foundry Company qualifies as a licensed “Subsidiary” under the Cross-Licenses, whether the creation of The Foundry Company is a breach of the provisions of one of the Cross-Licenses and whether either the transaction establishing The Foundry Company or the Company’s 2006 acquisition of ATI constituted a change of control of the Company under the Cross-Licenses.
The Company strongly believes that The Foundry Company qualifies as a “Subsidiary” under the Cross-Licenses, that the creation of The Foundry Company is not a breach of the provisions of either of the Cross-Licenses and that neither the transaction establishing The Foundry Company nor the Company’s acquisition of ATI constituted a change of control of the Company under the Cross-Licenses.
