Monday, March 15, 2010

Intel Lawsuits

Intel has often been accused by competitors of using legal claims to thwart competition. Intel claims that it is defending its intellectual property. Intel has been plaintiff and defendant in numerous legal actions.

In September 2005, Intel filed a response to an AMD lawsuit,[74] disputing AMD's claims, and claiming that Intel's business practices are fair and lawful. In a rebuttal, Intel deconstructed AMD's offensive strategy and argued that AMD struggled largely as a result of its own bad business decisions, including underinvestment in essential manufacturing capacity and excessive reliance on contracting out chip foundries.[75] Legal analysts predict the lawsuit will most drag for a number of years, since Intel's response indicates that Intel is not likely to settle the dispute with AMD.[76][77] A court date has been granted in 2010.[78]

In October 2006, a Transmeta lawsuit was filed against Intel for patent infringement on computer architecture and power efficiency technologies.[79] The lawsuit was settled in October 2007, with Intel agreeing to pay USD 150 million initially and USD 20 million per year for the next five years. Both companies agreed to drop lawsuits against each other, while Intel was granted a perpetual non-exclusive license to use current and future patented Transmeta technologies in its chips for 10 years.[80]

On November 4, 2009, New York's attorney general filed an antitrust lawsuit against Intel Corp, claiming the company used "illegal threats and collusion" to dominate the market for computer microprocessors.

On November 12, 2009, Intel and AMD announced a truce for 5 years by Intel paying AMD $1.25 billion in exchange for it to drop the antitrust suit AMD brought against Intel five years ago[81]. In a joint statement, the two chip makers said this, "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."

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