Intel to Pay AMD $1.25B to End Legal Battle

Electronic News (11/12, Deffree) - Intel and AMD agree to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.The rivals also obtain patent rights from a new five-year cross license agreement.

For AMD, although this agreement may level the playing field slightly, ultimately OEM purchasing decisions come down to product price, performance, branding, customer preferences, and long-term relationships."

Berger continued to state that AMD is two years behind Intel in ramping its process technologies. However, he noted that at AMD's analyst day Wednesday company management claimed that AMD's GlobalFoundries alliance will close this gap meaningfully by 2011.