Intel Notifies AMD of Cross-License Breach Efforts to

Intel Corporation today disclosed that the company has notified
Advanced Micro Devices (AMD) that it believes AMD has breached a 2001
patent cross-license agreement with Intel. Intel believes that Global
Foundries is not a subsidiary under terms of the agreement and is
therefore not licensed under the 2001 patent cross-license agreement.
Intel also said the structure of the deal between AMD and ATIC
breaches a confidential portion of that agreement. Intel has asked AMD
to make the relevant portion of the agreement public, but so far AMD
has declined to do so. AMD's breach could result in the loss of
licenses and rights granted to AMD by Intel under the agreement.

"Intellectual property is a cornerstone of Intel's technology
leadership and for more than 30 years, the company has believed in the
strategic importance of licensing intellectual property in exchange
for fair value. However AMD cannot unilaterally extend Intel's
licensing rights to a third party without Intel's consent," said Bruce
Sewell, senior vice president and general counsel for Intel. "We have
attempted to address our concerns with AMD without success since
October. We are willing to find a resolution but at the same time we
have an obligation to our stockholders to protect the billions of
dollars we've invested in intellectual property."
Under terms of the license agreement the notification to AMD means the
parties will attempt to resolve the dispute through mediation. In
response to the notification AMD claimed Intel breached the agreement
by notifying AMD of its breach. Intel believes that position is
inconsistent with the dispute resolution process outlined in the
original agreement.
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