AMD sues Intel

by Anand Lal Shimpi on June 28, 2005 2:03 PM EST
So AMD is suing Intel. First, I'd suggest reading through the 48-page complaint filed by AMD. Given that Vinney is in law school, I've seen a few of these things, but this one is surprisingly legible even for us non-legal types :)

I've known about this sort of stuff for quite some time, in fact, I'd say that out of the 48 pages AMD's legal team put together there's a lot missing. AMD told me that they aren't putting all cards on the table, but here are a couple of other things that I've seen personally:

I can't even begin to count the number of times where motherboard manufacturers have told me that they could not:

1) Send an AMD motherboard for review
2) Promote an AMD motherboard
3) Let us take pictures of an AMD motherboard

Out of fear of Intel retaliation. Remember the original Athlon days when no motherboard manufacturer would dare make a board for the K7? All of the frightened manufacturers were afraid of them losing their Intel chipset allocation if they supported the K7.

The same sort of stuff happened during the i820 days. Intel's first RDRAM based chipset was a complete flop, yet they offered no real SDRAM alternative. VIA did however, and Intel punished those manufacturers who didn't promote their i820 platforms or who too eagerly embraced VIA's solutions.

The list goes on and on.

What's my take on it? I'm all for competition based on technology and technological merit. Whenever Intel was faster we'd recommend them, and whenever AMD was faster, we'd do the same for them. Luckily, you all get it: AMD's market share among our readership is around 50% because you all generally purchase based on technology, performance and a lot of you are building your own systems, so these issues don't directly affect you. Obviously the rest of the market doesn't work that way, and I'd be glad to see that change; it benefits the end user and that's all I care about.

Right now AMD builds the best desktop CPUs, Intel offers the best value on dual core desktop CPUs and Intel has the best mobile chips. It would be nice if the entire market purchased based on those purely technological comparisons.

What will come of AMD's lawsuit? AMD told me that they are in this for the long haul and they aren't expecting to even go to trial in the next 18 months. I'm not sure what the end result will be, but I do know that things aren't entirely balanced today; and I am a fan of anything that drives innovation and produces better overall products for the end users.

One thing is for sure: I would hate for just AMD or Intel to exist, we need both and we need balance. If this lawsuit results in more balance and better competition based on technology rather than marketing ability, then more power to AMD.

Your thoughts?
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  • Marcus - Saturday, July 2, 2005 - link

    I think its really funny that in the United States, the most capitalistic country on Earth, which has a 'Free Market'. So if any thing, shouldn't it be a illegal to oppose this 'Free Market'? Isn't it just that maybe Intel has a smarter buisness strategy? And AMD is trying to abuse Intel's constitutional rights to compete for profit. Which is very ironic, because AMD is saying no one can compete against Intel, yet it is AMD that if anything is destroying the right to compete for proft. AMD can't complain that Dell decided run solely with Intel. It's Dell's right to capitlism. Intel convinced HP to maybe move away from AMD by supplying them with 'capital' to fight an 'enemy' of HP, isn't that their right?
    How can AMD sue? The US is supposed to be a free country! AMD themeselves says they are doing very well! So why can they sue? Hypocritical. But at the time thats what the whole US is. Hypocritical. That is the whole system.

    And just so you know, I am not an Intel 'fanboy'. Quite frankly I don't really care for AMD or Intel. I just buy whatever gets me the most power for cheapest. Maybe I should support Linus Torvalds and go for Transmeta instead?
  • TheChefO - Friday, July 1, 2005 - link

    Anand,

    I sincerely hope nothing negative will come of you or anandtech as a result of the ps3 v x360 article, but if at all possible, could you give us some explanation on why it was removed?

    If for legal reasons you can't go into detail could you at least say something on the matter?

    Take care,
    -Chef
  • Alan - Friday, July 1, 2005 - link

    yeh i read it too, i think that some of it will be hard to prove, and some of it will be found to not be in violation of antitrust laws, but if AMD can prove even 5 or 6 incidents (and i hope they can) then they'll win big. paragraphs 102-105 were real intel killers :-)
  • ceefka - Friday, July 1, 2005 - link

    I read the entire 48p. It's quite a scheme Intel is pulling there. It sounds very plausible too. Otellini's reply was not very convincing. He acts like he doesn't know what's going on in his sales department. He'll probably resign after the trial and get a golden handshake
    (i.e. few million bucks to go).
  • Anonymous - Friday, July 1, 2005 - link

    #56
    there is no transmeta anymore....
  • Heron - Friday, July 1, 2005 - link

    I can say, good timing AMD. It's been long overdue for what Intel has been doing to subvert the CPU makers. In the sunny island of Singapore, where I live, OEM can sells exclusively Intel Desktops. The only break was the K7 Athlon 1 GHz in Compaq computers. But now, you see only the Sempron Mobile...

    AMD has to make a move in more Asian countries to make itself more attractive than it really is. After that, well, Intel, better buck up there, you are the competition, after all. Oh, and I certainly hope VIA and Transmeta can do better if AMD wins out...
  • Tim - Thursday, June 30, 2005 - link

    To quote Walt Whitman, "I too am not a bit tamed, I too am untranslatable, I sound my barbaric yawp over the roofs of the world."

    If your vendor, reseller, oem, or general supplier won't stock what you want- sound your barbaric yawp until they do. If that doesn't work, exercise your free enterprise privies and find someone who will.

    Personally, I commend Intel for their years of innovation. But what AMD has done in the last decade far surpasses the milestones of Intel. And these should both be recognized by even the most die-hard fanboys of either side of the debate. And let us not forget the innovations of the little guys whose innovations far outweigh their market share. "Here's to you Transmeta."

    I find it quite disheartening that it takes a lawsuit to motivate end-users to truly question what defines the boundary between innovation and the bottom line. Yes, we should all pay less for our products- but at what cost?
  • StGabe - Thursday, June 30, 2005 - link

    I read what I could of AMD's complaint (basically until I couldn't stand to hear any more about how evil Intel has been). Thanks for posting this. It's inspired me to look further into things. Assuming further reading and following of this issue confirms AMD's claims, I hereby vow that my next computer will be my first AMD.
  • smn198 - Thursday, June 30, 2005 - link

    Cheers!
  • JoeS - Thursday, June 30, 2005 - link

    You can find the article here:

    http://forum.xbox365.com/ubb/ultimatebb.cgi?ubb=ge...

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