Six rules are laid down for Intel to obey
The terms of the agreement between AMD and Intel were published as an SEC 8K filing last night.
Apart from the patent cross license agreement, lasting five years, licenses for X86 technology are now royalty free for both parties, and AMD has broad rights for X86 devices.
There's also an agreement made between Intel and Global Foundries, the foundry that was spun off from AMD. But those terms, although no doubt highly interesting, are confidential.
These are the rules that Intel has to agree to over the next 10 years, according to the SEC filing:
1) Intel must not offer inducements to customers in exchange for an agreement to buy all CPUs from it alone, whether on a geographic, a market segment, a product segment or on a distribution channel basis.
2) Intel must not offer inducements in exchange for their agreement to limit or delay their purchase of microprocessors from AMD.
3) Intel must not offer inducements to customers in exchange for their agreement to limit their promotion, production or distribution of products containing AMD processors.
4) Intel must not offer inducements to customers in exchange for their agreement to abstain from or delay their participation in AMD product launches, announcements, advertising or other promotional activities.
5) Intel must not offer inducements to retailers or distributors to limit or delay their purchase or distribution of computer systems or platforms containing AMD microprocessors.
6) Intel must not withhold any benefit or threaten retaliation against anyone for their refusal to enter into a prohibited arrangement such as those set forth above.
The Settlement Agreement terminates either 10 years from the date of the agreement, or the date when Mercury Research reports that Intel has less than 65 percent market share in the worldwide PC market for four consecutive quarters.
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