AMD, Intel Court Fight Continues (
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The two companies, locked in an ongoing legal fight, submit new court papers as the 2009 trial date looms.AMD and Intel have each filed a series of
new documents in federal court as the ongoing legal dispute between the two
chip makers moves toward a 2009 court date.
The papers, which were submitted May 1 and made public May 5, were filed as
part of the antitrust
case that AMD brought against Intel in 2005. The case, which has been
assigned to the U.S. District Court in Delaware,
has been scheduled for an April 2009 trial date.
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AMD has accused Intel of abusing its
dominant position in the x86 microprocessor market to stifle competition
through a variety of means, including offering deep discounts to vendors to
remain exclusive partners, punishing those OEMs that considered using a second
chip supplier and giving away products in order to maintain market share.
For the first time, AMD has presented its
allegations in a formal summary of its case—a 100-page plus document that
details its allegations against Intel and claims to show how the company has used
its position with OEMs to dominate the market since IBM
introduced the first personal computer with a version of the Intel 8086
processor.
In its counterargument, which also runs over 100 pages, Intel contends that
the marketplace is competitive and that AMD's
accusations are an attempt to make up for years of producing inferior products.
Each side claims that its x86 microprocessor technology contains the superior
innovations needed by PC and server vendors as well as the average consumer.
The filings are culled from between 150 and 200 million pages of documents
that have been introduced in the case so far. After reading the summaries, the
two judges in the case will determine which witnesses can be deposed, and that
will set up the actual trial in 2009. AMD's
attorneys are expected to take depositions throughout the rest of the year and
possibly into 2009.
The latest filings offer a glimpse into how AMD
plans to present its case before the federal court. In the filings, AMD
claims that all of the major OEMs—Hewlett-Packard, Dell, IBM,
Acer, Gateway—received special treatment from Intel if the companies bought only
Intel processors.
These relationships with vendors formed the base of Intel's practices and
led to AMD's exclusion from the market
place, AMD argues.
If these vendors, or some of the other smaller companies, decided to look at
or build PCs or servers with AMD processors,
they were punished by Intel, according to AMD.
For example, in the late 1990s, Gateway took a serious look at AMD
processors and decided to offer a line that used the company's chips. Then, for
reasons that are not clear, Gateway—a longtime exclusive user of Intel chips—dropped
AMD.
"Gateway suddenly 'phased out' AMD
in July 1999, and Gateway abruptly cancelled its launch of a machine based on AMD's
Athlon processor," according to the documents. (Acer, which now owns
Gateway, now uses AMD processors in Gateway
PCs.)
How and why Intel would have caused Gateway to do this and what evidence AMD
plans to present of this remain unknown.
The public versions of these documents are heavily redacted due to a
protection order that the two judges assigned to the case agreed on to protect
trade secrets and other proprietary information. In an interview, Chuck
Diamond, lead outside counsel for AMD, said
Intel has used the protection order to excess in order to shield its sales
practices from the public.