Intel threatens to yank AMD licensing pact

 

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By Stuart Turton

Posted on 16 Mar 2009 at 15:07

AMD has announced that Intel intends to pull their 2001 cross-licensing pact, following through on threats made in the wake of AMD's decision to spin off its manufacturing arm.

The licensing pact was originally set to run until 2010 and allows AMD to utilise Intel's x86 technologies so long as they're not transferred to a third party.

This is exactly what Intel is accusing AMD of doing by spinning off its manufacturing assets into a joint venture, dubbed The Foundry Company.

Intel first raised its concerns five months ago, when the deal was announced and sent a written letter to AMD requesting sit down talks. AMD dismissed the letter as "scaremongering", but now it appears the company was deadly serious.

In the court filing, Intel claims it will pull the pact in the next 60 days unless concerns surrounding AMD's joint-chip foundry are addressed.

AMD has hit back that "Intel's purported attempt to terminate the Company's rights and licenses under the Cross License itself constitutes a material breach of the Cross License by Intel which gives the Company the right to terminate Intel's rights and licenses under the Cross License Agreement while retaining the Company's rights and licenses under the Cross License Agreement".

In other words expect a long, escalating legal wrangle.