AMD gives up processor profits to Intergraph

Patent payout

AMD has agreed to pay Intergraph up to $25m to settle a chip patent dispute.

AMD and Intergraph have put an end to their legal feud that included a lawsuit in the United States District Court for the Northern District of California. Under the terms of their agreement, AMD will pay Intergraph $10m and shell out 2 per cent of the profits from its microprocessor business over the next three years (2005-2007).

Shocking! Well, not exactly.

The two companies have set a $5m per year cap and a $25m overall cap on the deal.

Relatively speaking, AMD got off light with the lawsuit-happy Intergraph. Intel settled last month with Intergraph for $225m. That amount was added to hundreds of millions of dollars Intergraph pulled in from Intel in previous rulings. Intergraph has been seeking compensation for its high-end processor patents. ®

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