Intel Pays AMD 1.25 Billion Dollars.

Intel has been facing a lot of anti-trust lawsuits recently. This is nothing new for the boys in blue, they have been facing legal battles for quite some time.

Here is a brief history of Intel's legal woes from CNBC. (http://www.cnbc.com/id/33896864/for/cnbc/)

_ 1976: The companies sign their first cross-licensing agreement.

_ 1982: Intel wins a contract to supply IBM Corp. with microprocessors for its line of personal computers, and renews the cross-licensing deal with AMD to serve as an alternative supplier to IBM.

_ 1987: AMD accuses Intel of breaking the contract and files legal papers to begin arbitration. Years of legal disputes follow.

_ 1990: Intel files a copyright infringement lawsuit against AMD over technology in one of its chips.

_ 1991: AMD files antitrust lawsuit against Intel. Intel files separate copyright infringement lawsuit against AMD over another one of its chips.

_ 1992: AMD files "tortious interference" lawsuit against Intel over licensing practices.

_ 1993: Intel sues AMD over alleged copyright infringement in another AMD processor.

_ 1995: AMD and Intel settle all litigation between them. Intel gets $58 million, while AMD gets $18 million.

_ 1997: Intel sues AMD and another company alleging trademark infringement. The companies settle later that year.

_ 2000: AMD files a complaint with the European Commission accusing Intel of abusing its dominant market position.

_ 2005: Japan's Fair Trade Commission finds that Intel violated antitrust rules there, a ruling Intel eventually accepts without admitting wrongdoing. AMD files antitrust lawsuit against Intel in Delaware federal court.

_ 2008: Regulators in Korea fine Intel $18.6 million, a ruling Intel is appealing. U.S. Federal Trade Commission opens formal probe of Intel's behavior.

_ 2009: European regulators fine Intel a record $1.45 billion, a fine Intel pays but is appealing. New York Attorney General Andrew Cuomo files a federal lawsuit against Intel. Intel warns AMD that the spinoff of its manufacturing division violates the companies' cross-license agreement. The companies settle Thursday, with Intel agreeing to pay AMD $1.25 billion and the companies entering into new, five-year cross-licensing deal.


AMD has been taking drastic measures to stay solvent. The company recently spun off its chip-printing foundries, and has tried to restructure debt. This large windfall can be used to help set AMD on the right path.

This is a large pill to swallow for Intel, which has been paying huge fines all over the world as of late. But this is largely good news for consumers, because AMD represents one of the few threats left to Intel. AMD has pushed the technology envelope for years. Forcing Intel to play catch up.

Intel isn't a slouch but without competition a market stagnates. Intel has shown great business tactics, nearly forcing competition out of business (which is the goal of business, sadly what is good for business is usually bad for consumers). But AMD designing chips is good news. Hopefully we can see increased competition.

You just have to look at Google forcing Microsoft to rethink its online strategy to see that competition forces new ideas to market.