AMD 8-K on Intel's threat to pull cross-license

AMD's 8-K Filing has been released and we have been taking a little read through it. One of the big things that I noticed was the inclusion of Intel's threat to AMD that they will cancel the cross-licensing agreement in 60 days.

This threat came after AMD made the announcement they were splitting into two companies. At the point that Global Foundries opened for business Intel felt that AMD was in violation of the 2001 Patent and Cross-Licensing Agreement.

AMD does not feel this is the case and intends to fight this action by Intel. I do agree that AMD should fight this (to keep competition up if nothing else) but I am not sure how much more in legal fees they can really afford. After all they have spent a small fortune on the anti-competitive cases against Intel in the EU and the US.

Read the full 8-K here

"Advanced Micro Devices, Inc. (the "Company") has received correspondence from Intel Corporation ("Intel") related to the 2001 Patent Cross License Agreement between the Company and Intel (the "Cross License"). In this correspondence, Intel (i) alleges that the Company has committed a material breach of the Cross License through the creation of the Company's GLOBALFOUNDRIES joint venture and (ii) purports to terminate the Company's rights and licenses under the Cross License in 60 days if the alleged breach has not been corrected.

The Company strongly believes that (i) the Company has not breached the terms of the Cross-License and (ii) Intel has no right to terminate the Company's rights and licenses under the Cross License. Under the terms of the Cross License, there is an escalating procedure for resolving disputes, and the Company has commenced the application of that procedure with respect to Intel's purported attempt to terminate the Company's rights and licenses under the Cross License. In addition, the Company has informed Intel that the Company maintains that Intel's purported attempt to terminate the Company's rights and licenses under the Cross License itself constitutes a material breach of the Cross License by Intel which gives the Company the right to terminate Intel's rights and licenses under the Cross License Agreement while retaining the Company's rights and licenses under the Cross License Agreement."