How Does the Intel, AMD Settlement Affect the IT Industry?

Paul Lilly

There are a lot of winners in the $1.25 billion settlement between Intel and AMD. The most obvious one is AMD, who can use the money to pay off debt and put this longstanding legal dispute behind them. As part of the settlement, AMD also benefits from a new five-year cross licensing agreement.

In some respects, Intel can also be considered a winner, in that the chip maker could have ended up paying much more than $1.25 billion had this lawsuit gone the distance. And like AMD, Intel can put this episode behind them. And with both Intel and AMD no longer distracted by a costly court case, the two chip makers can put their full attention towards R&D.

"It's really good for the industry in general," said Roger Kay, an analyst with Endpoint Technologies Associates. "Both companies had devoted a lot of top management to the fight. It's pretty distracting. You really want top executives concentrating on the business at hand."

OEMs like HP and Dell also come out ahead by being able to choose whichever processors and platforms they want, rather than which ones they're being told to use. And that's good for consumers, too.

It's not often that a bitter legal dispute ends up having so many winners, but that's certainly the case here.

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