Alleges that AMD’s GlobalFoundries arm is not licensed under the cross-license agreement
Chip giant Intel has accused Advanced Micro Devices of breaching a 2001 patent cross-licensing agreement in a filing with the US Securities and Exchange Commission.
The company alleges that AMD’s GlobalFoundries arm was not a subsidiary under terms of the agreement and is therefore not licensed under the cross-license agreement. It also said the deal structure between AMD and ATIC breaches a confidential portion of its agreement with AMD.
Last October, AMD spun off its manufacturing operations into a joint venture called The Foundry Company (now GlobalFoundries) with Abu Dhabi-based Advanced Technology Investment Company, ATIC, and Mubadala Development Company.
Bruce Sewell, senior vice president and general counsel for Intel, said: Intellectual property is a cornerstone of Intel’s technology leadership and the company has believed in licensing intellectual property in exchange for fair value. However, AMD cannot unilaterally extend Intel’s licensing rights to a third party without Intel’s consent. We have an obligation to our stockholders to protect the billions of dollars we have invested in intellectual property.