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Read more with google mobile : Intel pays AMD $1.25 billion in antitrust case

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Intel pays AMD $1.25 billion in antitrust case AFP - Friday, November 13 Send IM Story Print Technicians set up the Intel display at the annual Consumer Electronics Show in Las Vegas, Nevada in January. Intel Corp. has agreed to pay Advanced Micro Devices $1.25 billion to settle a series of worldwide antitrust and patent disputes between the two chipmakers, the companies have said. WASHINGTON (AFP) - – Intel Corp. agreed Thursday to pay Advanced Micro Devices 1.25 billion dollars to settle a series of long-running legal disputes between the two chipmakers on antitrust and patent issues worldwide. The announcement comes with Intel, the world's biggest maker of semiconductors, facing litigation around the world alleging it abused its dominant position in the sector. The companies said in a joint statement that the settlement represents "a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes." "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 statement said. AMD and Intel agreed to patent rights from a new five-year cross license agreement, and to give up any claims of breach of contract. In addition to the payment of 1.25 billion dollars, Intel has also agreed to abide by a set of business practice provisions. AMD will drop all pending litigation including the case in US District Court in Delaware and two cases pending in Japan and will withdraw all of its regulatory complaints worldwide, the statement said. AMD president at chief executive Dirk Meyer said the agreement seeks "to create a level playing field" in the processor industry and will move AMD "one big step closer to achieving our bold vision." The news comes just a week after the attorney general of New York state filed an antitrust lawsuit against Intel alleging the chip giant engaged in illegal practices to dominate the market. It accused the company of "exacting exclusive or near-exclusive agreements from large computer makers in exchange for payments totaling billions of dollars" and threatening retaliation against firms that did not fall in line. The suit marked another legal challenge for Intel, which is already being investigated by the US Federal Trade Commission and faces scrutiny from regulators around the world. European Union antitrust regulators fined Intel a record 1.06 billion euros (1.45 billion dollars) in May, claiming the company abused its stranglehold on the semiconductor market to crush AMD. Intel denied the charges and has appealed the EU ruling. Intel last year also challenged against an 18 million dollar fine imposed by South Korea's anti-trust watchdog. AMD filed a lawsuit in 2005 a Delaware federal court alleging a catalogue of abuses by Intel, including threats of retaliation against firms if they do not buy from Intel rather than AMD. At the time of the lawsuit, Intel held a share of more than 80 percent of the market for microprocessors for the world's personal computers. AMD's share had slipped to just under 16 percent from about 20 percent in 2001. Douglas McIntyre, analyst at 24/7 Wall Street, said AMD "has had a pretty strong antitrust claim against Intel" in the case alleging that Intel "bullied customers using it huge market share." "It was okay for AMD to sell out rather than fight on for what might be several years, but it should have gotten a better price for its shareholders," McIntyre added. 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