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Intel clashes with AMD over GlobalFoundries

AMD fights back saying Intel is trying to divert attention away from its antitrust violations

Intel has recently hit out at Advanced Micro Devices (AMD) stating that the newly formed GlobalFoundries breaches the patent cross-license agreement both companies entered into in 2001.

According to Intel, GlobalFoundries is not recognised as a subsidiary and breaches the agreement, with the company threatening to revoke rights it presently grants to AMD.

GlobalFoundries, which launched earlier this month, is a joint venture between Advanced Micro Devices and the Advanced Technology Investment Company, owned by the government of Abu Dhabi.

"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.

Advanced Micro Devices is fighting allegations and is confident that the chip foundry does not breach the existing agreement. Instead, it accuses Intel of trying to distract attention away from its own antitrust violations.

“Intel’s action is an attempt to distract the world from the global antitrust scrutiny it faces,” AMD wrote in a company statement. “With a ruling from the European Commission and a U.S. trial date looming, and investigations by the U.S. FTC and NY Attorney General, the clock is ticking on Intel’s illegal practices - and yet with its dominant monopoly position it still tries to stifle competitors.”

“Should this matter proceed to litigation, we will prove that Intel fabricated this claim to interfere with our commercial relationships and thus has violated the cross-license,” the statement went on to add.

The company also claims that Intel’s attempt to terminate AMD’s license itself constitutes a breach of the agreement, which gives AMD the right to terminate Intel’s license.