Intel Corporation and Advanced Micro Devices, last weekend, announced a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes reports CHARLES OKOH.
In a joint press statement, from Intel Corporation, quoted the two companies as saying that 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.”
Under terms of the agreement, AMD and Intel obtain patent rights from a new 5-year cross license agreement.
With this, Intel and AMD would give up any claims of breach from the previous license agreement, and Intel is expected to pay AMD $1.25 billion, about (N189.6m).
Also, Intel has agreed to abide by a set of business practice provisions, as a result, AMD would drop all pending litigation including the case in United States (US) District Court in Delaware and two cases pending in Japan.
Additionally, AMD would withdraw all of its regulatory complaints worldwide, whereas the agreement would be made public in filings with the Securities and Exchange Commission.
AMD is an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. While Intel, the acclaimed global leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live.
Meanwhile, Intel Corporation adjusted its fourth-quarter financial expectations to reflect the impact of the $1.25 billion settlement payment recently entered with AMD with its expected spending on Research and Development (R&D) plus Merger and Acquisition (MG&A) in the fourth quarter to be approximately $4.2 billion. This is up from $2.9 billion.
In addition, the effective tax rate, the company said in a press statement made available to ITRealms Online is expected to be approximately 20 per cent, down from 26 per cent. All other expectations are unchanged.
Intel’s fourth-quarter business outlook was originally published in the company’s third-quarter earnings release, available at www.intc.com. The company is scheduled to report its fourth-quarter financial results on January 14.
But through November 25, Intel’s corporate representatives may reiterate the business outlook during private meetings with investors, investment analysts, media and others.
From the close of business on the aforementioned date until publication of the company’s fourth-
quarter earnings release, Intel will observe a “Quiet Period” during which the business outlook disclosed in the company’s news releases and filings with the SEC should be considered to be historical, speaking as of prior to the quiet period only and not subject to an update by the company.
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