Rival files antitrust suit against Intel; Advanced Micro opens latest legal skirmish among chip makers

Article Abstract:

Advanced Micro Devices Inc (AMD) sues Intel Corp for violating antitrust laws, saying Intel tries to monopolize the microprocessor market. At the same time, the Federal Trade Commission is investigating Intel's business practices. Cyrix Corp is also suing Intel for antitrust violations, and Cyrix is being counter-sued by Intel for patent violations. The new suit by Advanced Micro contends that Intel led AMD to believe it would be licensed to manufacture Intel's 80386, as AMD had been to make the earlier 80286 chip. This belief dissuaded Advanced Micro from obtaining a license from another manufacturer or developing a clone chip. The suit also alleges that Intel forced customers to buy a certain number of 286 chips before it would sell them 386 chips. AMD has already won an arbitration case that determined that it should have been given rights to manufacture the 386 chip. Remedies in that case have not been determined.

INTC, Investigations, Antitrust law, Contracts, AMD, United States. Federal Trade Commission, Monopolies, Licensing, Antitrust Laws, Semiconductor Industry, Investigation

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Court ruling hits the stock of Advanced Micro Devices

Article Abstract:

A court ruling that triggered doubts about Advanced Micro Devices' (AMD) right to manufacture clones of the Intel 80386 microprocessor causes the company' stock to go down $4.25, to $23.75, on Jun 7, 1993. AMD gets most of its $1.5 billion annual revenue from its 386 chip and holds more than half of the market. On Friday, Jun 4, the California Sixth District Court of Appeals overturned an arbitrator's earlier ruling granting AMD permanent, worldwide and royalty-free rights to come out with its 386 clone. The California court thought the 1992 arbitrator's decision was too broad. AMD is involved in three other cases filed by Intel; one centers on the company's clone of the 486 microprocessor.

Computer peripheral equipment, not elsewhere classified, Computer storage devices, Microprocessor, CPUs (Central processing units), Microprocessors, Compatibility (Computers), Compatible Hardware, Stock, Court Cases, Intel 80386 (Microprocessor)

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