AMD contradicts Intel on cross-licensing issue

— 6:00 AM on October 9, 2008

Yesterday, an Intel spokesman commented on AMD's fab spin-off, saying Intel has "serious questions" about how the transaction relates to the two firms' cross-licensing agreement. That agreement might limit the volume of x86 chip manufacturing AMD can outsource—something that would cause problems, seeing as the spin-off involves an Abu Dhabi-based firm getting a majority stake in the new fab business.

As eWeek reports, AMD has now responded by denying that it's running afoul of the agreement:

"We are completely confident the structure of this transaction takes into account our cross-license agreements," Phil Hughes, an AMD spokesman, wrote in an email. "Rest assured – we plan to continue respecting Intel's intellectual property rights, just as we expect them to respect ours."

In addition to questioning AMD's move, Intel also took a jab at its rival for allegedly refusing to make the cross-licensing agreement public. On that point, Hughes mentioned, "It's a business documents [sic] and we are not going to negotiate this in the press or the media." Hughes believes the matter should stay confined to the two companies' lawyers right now.

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