AMD v. Intel
Encyclopedia
AMD v. Intel was an antitrust
lawsuit
, filed by Advanced Micro Devices
("AMD") against Intel Corporation
in June 2005.
manufacturer. AMD has claimed that Intel engaged in unfair competition
by offering rebates to Japanese PC manufacturers who agreed to eliminate or limit purchases of microprocessors made by AMD or a smaller manufacturer, Transmeta
.
The complaint was filed in the U.S. District Court in Delaware
in June 2005. The court date, originally scheduled for April 2009, was pushed back to February 2010. One delay was due to the Korea Fair Trade Commission
issuing Intel a fine of US$25.4 million. Some of the manufacturers involved in the case were Dell
, HP, Gateway
, Acer, Fujitsu
, Sony
, Toshiba
, and Hitachi
.
In February 2009 it was reported that Intel had spent at least US$116 million to date on legal representation on the antitrust suit. This was inferred from a US$50 million lawsuit filed by Intel against one of its insurers; the lawsuit disclosed that Intel had already exhausted US$66 million in coverage from two other insurers while fighting the antitrust lawsuit.
This is not the first time AMD has accused Intel Corp. of abusing their power as the leading manufacturer for x86 processors. In 1991, AMD filed an antitrust lawsuit against Intel claiming that they were trying to secure and maintain a monopoly, and one year later, a court ruled against Intel, awarding AMD US$10 million "plus a royalty-free license to any Intel patents used in AMD's own 386-style processor".
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
, filed by Advanced Micro Devices
Advanced Micro Devices
Advanced Micro Devices, Inc. or AMD is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets...
("AMD") against Intel Corporation
Intel Corporation
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most...
in June 2005.
History
AMD launched the lawsuit against its rival Intel, the world's leading microprocessorMicroprocessor
A microprocessor incorporates the functions of a computer's central processing unit on a single integrated circuit, or at most a few integrated circuits. It is a multipurpose, programmable device that accepts digital data as input, processes it according to instructions stored in its memory, and...
manufacturer. AMD has claimed that Intel engaged in unfair competition
Unfair competition
Unfair competition in a sense means that the competitors compete on unequal terms, because favourable or disadvantageous conditions are applied to some competitors but not to others; or that the actions of some competitors actively harm the position of others with respect to their ability to...
by offering rebates to Japanese PC manufacturers who agreed to eliminate or limit purchases of microprocessors made by AMD or a smaller manufacturer, Transmeta
Transmeta
Transmeta Corporation was a US-based corporation that licensed low power semiconductor intellectual property. Transmeta originally produced very long instruction word code morphing microprocessors, with a focus on reducing power consumption in electronic devices. It was founded in 1995 by Bob...
.
The complaint was filed in the U.S. District Court in Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
in June 2005. The court date, originally scheduled for April 2009, was pushed back to February 2010. One delay was due to the Korea Fair Trade Commission
Fair Trade Commission (South Korea)
The Korea Fair Trade Commission is South Korea's regulatory authority for economic competition. It was established in 1981 within the Economic Planning Board. The establishing law was the Monopoly Regulation and Fair Trade Act , Law No. 3320, December 31, 1980...
issuing Intel a fine of US$25.4 million. Some of the manufacturers involved in the case were Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
, HP, Gateway
Gateway, Inc.
Gateway Computer Corporation, is a computer hardware company headquartered in Irvine, California, USA which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers, and computer accessories...
, Acer, Fujitsu
Fujitsu
is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....
, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, Toshiba
Toshiba
is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...
, and Hitachi
Hitachi, Ltd.
is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...
.
In February 2009 it was reported that Intel had spent at least US$116 million to date on legal representation on the antitrust suit. This was inferred from a US$50 million lawsuit filed by Intel against one of its insurers; the lawsuit disclosed that Intel had already exhausted US$66 million in coverage from two other insurers while fighting the antitrust lawsuit.
This is not the first time AMD has accused Intel Corp. of abusing their power as the leading manufacturer for x86 processors. In 1991, AMD filed an antitrust lawsuit against Intel claiming that they were trying to secure and maintain a monopoly, and one year later, a court ruled against Intel, awarding AMD US$10 million "plus a royalty-free license to any Intel patents used in AMD's own 386-style processor".