Intel And AMD Settle Ongoing Litigation; Antitrust Claims Yanked

With the news that Intel and AMD have settled their antitrust, patent and license disagreements, it's all love, hugs and snuggles in the big, scary world of silicon today.  The two companies have settled all of their ongoing legal disputes, with a new, five-year cross license agreement and Intel paying AMD $1.25bn together with agreeing "to abide by a set of business practice provisions" that, as yet, we don't know full details regarding.

AMD will, in return, drop all of their upcoming litigation – including one US and two Japanese cases – and yank its regulatory complaints.  Neither company will be allowed to complain about any previous license agreements or breaches they believe have been made.  Looks like we'll have to wait until things get properly filed with the Securities and Exchange Commission before we find out full details; meanwhile, Intel and AMD are now apparently going to "focus all of our efforts on product innovation and development" rather than kicking seven shades out of each other.

Press Release:

SUNNYVALE/SANTA CLARA, Calif. – Nov. 12, 2009 – Intel Corporation and Advanced Micro Devices (NYSE: AMD) today 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.