Experts: Patent dispute with Intel won't choke supply of AMD chips

AMD adamant that Global Foundries subsidiary meets cross-licensing deal
By Eric Lai March 16, 2009

Intel Corp.'s threat to pull its cross-licensing deal with Advanced Micro Devices Inc. is unlikely to result in a shortage of AMD processors in the market, experts said Monday. "Gosh, I'd worry more about a meteor slamming into the Earth," said Nathan Brookwood, a longtime analyst at Insight64, noting that very few patent lawsuits in Silicon Valley result in either party being forced to halt production. Even as both Intel and AMD amp up their legal posturing and rhetoric, they will also "go on their merry way making their products," he said. One reason is the terms of the 2001 deal struck by AMD and Intel, which spell out that any dispute must be settled in state court or federal court in Delaware. It would take at least three years for Intel to get a court order to force AMD to stop making processors, according to Mark Walters, a patent lawyer in the Seattle office of Darby & Darby PC.

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