- The Washington Times - Monday, March 16, 2009

SANTA CLARA, CALIF. (AP) - Chipmaker Intel Corp. intensified a patent fight with Advanced Micro Devices Inc. Monday, saying its competitor violated a licensing agreement and that it was prepared to revoke AMD’s permission to use its technology.

The licensing agreement covers Intel’s so-called x86 architecture, the heart of PC chips and many server chips. A dispute arose after AMD spun off a new chip company, GlobalFoundries Inc., with the help from an Abu Dhabi-based partner, Advanced Technology Investment Co.

Sunnyvale, Calif.-based AMD has said it believes the spinoff is an AMD subsidiary and should have the same rights to the Intel technology that it licensed in 2001.

Intel disagreed, but initially appeared willing to have discussions. AMD revealed in a January regulatory filing that Intel had asked for a meeting to talk about the possible violation.

But in a new salvo Monday, Intel decisively said it does not consider GlobalFoundries to be an AMD subsidiary and therefore it is not entitled to Intel’s technology. It also argued that the structure of AMD’s deal with ATIC breaches a confidential part of the patent agreement.

In a statement, AMD said “Intel’s action is an attempt to distract the world from the global antitrust scrutiny it faces. Should this matter proceed to litigation, we will prove not only that Intel is wrong, but also that Intel fabricated this claim to interfere with our commercial relationships and thus has violated the cross-license.”

Shares of Intel slipped 30 cents to $14.40 in afternoon trading. AMD’s stock jumped 13 cents, or 5.1 percent, to $2.65.

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