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Intel Agrees To A $1.25 Billion Payout To Settle Dispute With AMD

In a deal which surprised everybody, Intel has apparently agreed to pay $1.25 billion to AMD to settle claims made by AMD that Intel was in breach of the Antitrust and Patent laws. The move came days after the European Commission for antitrust offences fined Intel to the excess of $1.5 Billion.

AMD had first filed a lawsuit in 2005 claiming that Intel used its dominant market position to offer buyers heavy discounts if they refrained from buying AMD chips. Since then the two giants were at loggerheads with each other.

Apart from the money involved, Intel has also taken an undertaking that it would not use the alleged unfair trade practices against AMD. The two companies also signed a five year cross-licensing deal with each other and in return AMD has agreed to drop all the cases against Intel.

In joint statement issued by Intel and AMD, the two companies said even though the relations between the two companies have been strained, this deal will end all the legal disputes between the companies and allow them to focus on developing new products for the market.

Though the two parties have settled their issues for now, the controlling authorities have vowed to continue their ongoing investigations against Intel which include charges of breach of contract and antitrust laws

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.

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