Intel to pay $1.25 billion to AMD

Intel to pay $1.25 billion to AMD under new settlement contract

Intel and AMD announced a “comprehensive” agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes. Under the new agreement Intel will pay $1.25 billion to AMD. In return, AMD will drop all cases against Intel.

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.