Intel warns AMD about patent breach

Intel on Monday sent a notice to AMD saying it did not have the right to transfer x86 chip-manufacturing rights to GlobalFoundries.

Chip maker Intel on Monday sent a notice to rival Advanced Micro Devices that it violated a patent cross-licensing agreement when it spun off a manufacturing arm into a separate company.

Intel licensed AMD the rights to make and sell x86 chips under a 2001 patent cross-licensing agreement, said Chuck Mulloy, an Intel spokesman. AMD transferred the right to make x86 chips to its manufacturing spin-off GlobalFoundries, which Intel alleges violates terms of the original agreement.

Intel considers GlobalFoundries a separate company and not a manufacturing subsidiary of AMD. Though AMD has the right to make x86 chips, transferring those rights to a separate company was not part of the patent cross-licensing agreement with Intel, Intel said.

AMD last October announced it would focus on chip design and move its manufacturing operations to a separate company. AMD early in March closed a deal with investment firm Advanced Technology Investment Company to spin off manufacturing operations to GlobalFoundries. AMD received US$700 million from ATIC as part of deal, while getting a 34.2 share of GlobalFoundries. The rest of GlobalFoundries is owned by ATIC.

Breach of the agreement terms could result in the loss of licenses and rights Intel has granted to AMD, the company said. Both companies earlier tried to settle the dispute through negotiations but didn't reach an agreement. By sending the notice, Intel enters the next phase of talks with AMD under a mediator in an attempt to settle the dispute, Mulloy said.

Intel has asked AMD to make public portions of the agreement between AMD and ATIC, which is owned by the Abu Dhabi government.

In a filing with the SEC, AMD said it has not breached the terms of the cross-licensing agreement and that Intel had no right to terminate the company's rights and licenses. AMD has commenced the procedure to respond to "Intel's purported attempt to terminate the rights and licenses," the company said in the filing.

The notice represents an ugly escalation in the battle between the rival chip makers over the years. AMD has continuously accused Intel of anticompetitive behavior in the x86 microprocessor market by allegedly offering rebates and selling chips below cost to PC makers and retail stores. AMD helped initiate a European Commission investigation in Intel's business practices in 2000.

The notice is the latest ploy by Intel to divert attention from the antitrust suits it faces worldwide, AMD claimed.

"Intel's action is an attempt to distract the world from the global antitrust scrutiny it faces. Should this matter proceed to litigation, we will prove not only that Intel is wrong, but also that Intel fabricated this claim to interfere with our commercial relationships and thus has violated the cross-license," AMD said in a prepared statement.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags AMDintel

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?