Intel and AMD settle legal disputes

Intel is to pay Advanced Micro Devices (AMD) US$1.25bn to settle all legal disputes, marking an end to what has been a protracted and acrimonious battle between the world's biggest makers of personal computer chips. The move comes just days after Intel was sued by New York state for antitrust violations and follows a US$1.5bn fine slapped by the European Commission for antitrust offences. In their joint statement, the companies said: "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development." AMD will drop all pending cases, including one before a federal court in Delaware and two cases pending in Japan. The company also agreed to withdraw all of its regulatory complaints worldwide. Intel CEO Paul Otellini termed the settlement as a painful, but pragmatic, compromise.