..Computer industry tussles: INTEL Vs AMD..

Computer chip maker Intel is to pay
rival Advanced Micro Devices (AMD) $
1.25bn (£755m) to put a stop to a
number of long-running legal
disputes on competition and patent
issues around the world.
The pair, which have been at
loggerheads for years, will instead
now attempt to work together
through a new five-year licence
agreement.
The settlement however will not bring
to an end a number of high-profile,
government-led investigations into
Intel’s alleged abuse of its dominant
position in the computer chip
marketplace.
The surprise entente cordiale however
will stop the two bickering in public,
with AMD agreeing to withdraw
pending lawsuits in the US and in
Japan, as well as a number of
complaints lodged with competition
regulators worldwide.
In a joint statement, the two
companies said that the accord is “a
comprehensive agreement to end all
outstanding legal disputes between
the companies, including antitrust
litigation and patent cross license
disputes.”
Admitting the relationship between
the pair has “been difficult in the
past,” the statement went on to say
that it would allow both companies to
now focus their efforts on product
innovation and development.
AMD said it is now working on a “level
playing field” but that it will seek
“continued vigilance’ from
competition regulators.
Intel has also agreed to sign up to a
series of new business practices, while
AMD will give up any claims to breach
of contract.
Intel’s microchips power more than
80pc of the world’s computers, a
position that has led AMD to complain
about its market position and the way
it works with customers.
AMD first filed a lawsuit in 2005 in
Delaware, accusing Intel of
threatening companies that chose not
to buy from its product range.
But Intel has also been subjected to a
series of regulatory investigations. In
May of this year, Intel was fined $
1.45bn by the European Union for
paying manufacturers to use Intel
chips rather than those of AMD, a
ruling Intel is appealing. It is appealing
a similar, albeit smaller, ruling in
South Korea.
It also remains the subject of a
Federal Trade Commission probe in
the US, and one launched just a week
ago by New York Attorney General
Andrew Cuomo.
Mr Cuomo’s office, when filing the
complaint, said that the scheme to
allegedly abuse its position was
“orchestrated by the very top” of the
company and was not the “story of a
few rogue employees going too far.”
The Cuomo filing catalogued what it
alleged to be bribery and coercion to
customers including Dell and IBM
dating back several years, including
kickbacks and threats of retaliation for
using rival’s chips. Intel has denied
the allegations.

..the scuffle continues..