Intel and AMD renew legal sniping

Intel believes that AMD's Global Foundries unit is not entitled to use certain licences

Rival chipmakers AMD and Intel may be headed towards yet another legal showdown. The latest issue centres around AMD's recently announced Global Foundries spin-off.

AMD agreed in February to offload its manufacturing branch as an independent firm supported in part by investment from Abu Dhabi.

However, Intel believes that the formation of the new company runs foul of a 2001 licensing agreement between the two companies. Intel claims that Global Foundries does not qualify as a subsidiary under the deal and, as such, is not allowed to use any of the licences negotiated by AMD.

Intel claimed that it will seek to resolve the issue through mediation. "AMD cannot unilaterally extend Intel's licensing rights to a third party without Intel's consent," said Bruce Sewell, Intel senior vice president and general counsel.

"We are willing to find a resolution, but at the same time we have an obligation to our stockholders to protect the billions of dollars we've invested in intellectual property."

The latest incident extends what has been a contentious legal relationship between the rival chipmakers. AMD has long sought the aid of regulatory agencies in pursuing anti-trust cases against Intel, claiming that the company conspired with system vendors to push AMD out of markets worldwide.