In what can only be described as an exchange that keeps the market competitive, AMD and Intel have a comprehensive set of cross-licensing agreements. Amongst the most notable is AMD’s permission to use Intel’s x86 architecture and Intel’s permission to use AMD’s x86-64. Both patent suites, now a cornerstone of the CPU industry, are the basic building blocks for all of today’s major CPUs. However, in light of AMD’s Tuesday decision to spin off its fabrication arm into The Foundry Company, Intel is crying foul.
While The Foundry Company is currently beholden to AMD’s remaining engineering division, Intel suggests that it’s not enough to extend its agreements. Intel argues that The Foundry Company is no longer the AMD with which agreements are signed, but a new firm that must negotiate as one.
Intel’s claim is not entirely without merit given that the new foundry isn’t quite AMD any more. The Company is expected to pick up significant fabrication business of its own in addition to what obligations AMD might deliver.
In any regard, Intel is rattling its sabre and it will be interesting to see how this pans out.
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