All litigation between AMD and Intel has been settled, including any upcoming litigation, which has not yet seen the inside of a courtroom. The story is a strange one, because there has been litigation between AMD and Intel for the better part of my life; how strange it will be to not have any to analyze and talk about.

From PC Magazine we see that not only domestic, but foreign cases are part of this, as a couple of Japanese cases are being settled.

Advanced Micro Devices and Intel have agreed to settle their outstanding litigation, and Intel will pay AMD $1.25 billion as a result, the two companies said Thursday.

The settlement ends all litigation between the two companies, including a Delaware case and two cases in Japan. The U.S. case was scheduled to go to trial in 2010.

“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,” the two companies said in a statement.

AMD executives had declined to comment at an AMD analyst day on Thursday about the possibility of a settlement.

Under the 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, the companies said.

As a result of the litigation settlement, Intel said it now expects spending in the fourth quarter to be approximately $4.2 billion, up from $2.9 billion. All other expectations are unchanged, it said.

This may be a case where the paying party is getting off cheap. If the truth was to be discovered, I think we might find that AMD is not only tiring of the fight, it cannot really afford to continue it, as the only winners in many of these cases are the lawyers.

For Intel, it means that the gnat that is AMD is effectively swatted, and (in their collective minds) the fight can be made in the retail market. With Intel effectively owning the top and upper middle of the market, Intel must think its dominance is assured forever.

That may well be, but AMD was on the outs before and twice has come up to smack Intel across the board [K7 vs. Pentium III, Athlon64/Opteron vs Pentium IV). So with the Magny-Cours, Bulldozer, and Bobcat projects up and coming, the specter of Intel’s dishonest practices toward competition (hopefully) gone, AMD is finally be able to compete on its own merit.

Won’t that be interesting!


This Day In Music History

1833 – Composer Alexander Porfirievich Borodin was born.

1966 – Donovan’s “Mellow Yellow” was released.

1967 – Jerry Lee Lewis records “To Make Love Sweeter for You.”

1970 – The Doors made their last appearance with Jim Morrison in New Orleans.

1979 – Marty Balin’s, of Jefferson Starship, rock opera “Rock Justice” opens a four-day run at San Francisco’s Old Waldorf night club.

1984 – Madonna released the album “Like A Virgin.”

1987 – Sly Stone is arrested for nonpayment of child support when he arrives an hour late for his “comeback” concert in LA.

1989 – The musical “Grand Hotel” opened at the Beck Theatre.

1990 – Ron Wood, of the Rolling Stones, was injured when he was struck by a car near London.

1993 – Michael Jackson canceled a world tour, saying that he had a dependence on painkillers.

1996 – The album “Evita: The Complete Motion Picture Music Soundtrack” was released.

1997 – Chang Yu-Sheng, best know for his hit Mandarin song “My Future Is Not A Dream,” died three weeks after being injured in an auto accident.

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