and Advanced Micro Devices announced a comprehensive
agreement to end all outstanding legal disputes between the companies,
including antitrust litigation and patent cross license disputes.
In a joint statement the two companies 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."
Under terms of the agreement, AMD and Intel obtain patent rights
from a new 5-year cross license agreement, Intel and AMD will give up
any claims of breach from the previous license agreement, and Intel
will pay AMD $1.25 billion. Intel has also agreed to abide by a set of
business practice provisions. As a result, AMD will drop all pending
litigation including the case in U.S. District Court in Delaware and
two cases pending in Japan. AMD will also withdraw all of its
regulatory complaints worldwide. The agreement will be made public in
filings with the Securities and Exchange Commission.