One of the IT industry's longest-running battles came to an end yesterday when Intel agreed to pay AMD $1,25-billion to end all outstandng legal disputes between the two, including antitrust litigation and patent cross licence disputes.
In a joint statement the two companies say: "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 licence 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 US District Court in Delaware and two cases pending in Japan. AMD will also withdraw all of its regulatory complaints worldwide.
But while the two chip giants may have settled their differences, The European Union and the New York attorney general's office said they would continue with their cases against Intel.
Earlier this year the EU fined Intel a record $1,45-billion for anti-competitive behaviour and this month the New York attorney general filed an antitrust suit against it. Intel is currently appealing the EU fine and is expected to contest the New York lawsuit.