With possible action by the Federal Trade Commission looming, an unidentified Dell executive is cited prominently in legal documents as a person who might exonerate Intel, or at least mitigate the severity of the charges leveled against it for alleged antitrust behavior. So, what is known about this Dell mystery man?
This week the Dell executive, referred to as "Mr. A," was cited throughout the European Union ombudsman's "decision" on on a complaint filed by Intel about the European Commission's ruling against the chipmaker. Ombudsman P. Nikiforos Diamandouros' November 18 decision found "maladministration" on the part of the Commission because of its failure to make a "proper note" of a meeting with Dell--represented most prominently by Mr. A in the the ombudsman's decision.
Diamandouros has been the The European Union's ombudsman since April of 2003.
Most importantly, Mr. A is brought up by Intel as a person who has made exculpatory statements--and therefore could refute allegations such as those made about Intel and Dell in New York Attorney General Andrew Cuomo's complaint against the chipmaker.
And who is Mr. A? He was "a senior Dell executive" and the person "responsible for Dell's relationship with Intel," according to the ombudsman's published statement.
What else is known about Mr. A? Intel asserts in its complaint to the Commission--which the ombudsman responded to in its decision--that "Mr. A's FTC [Federal Trade Commission] testimony exonerates Intel and contradicts the allegations contained in the statement of objections concerning Dell's relationship with Intel."
And Intel has had more to say about this person. "Mr. A again gave sworn testimony confirming that the key points made in his 2003 FTC testimony, to the effect that Dell did not have an exclusive relationship with Intel and that Intel did not 'threaten' or 'punish' Dell for considering a dual-source [Intel and AMD] strategy."
Also in the ombudsman's decision--which refers to Intel as the complainant: "It is clear from these events that the Commission sought to conceal and suppress exculpatory evidence. Also in the complainant's view, this misconduct (and the failure to make a complete note of the meeting which would have eliminated any debate as to what Mr. A said) constitutes a serious act of maladministration."
Intel spokesman Chuck Mulloy said Thursday that Intel continues to talk to the FTC. "Yes we are talking. We are continuing to answer their questions concerning our business practices and now we are also explaining the settlement we just completed with AMD [Advanced Micro Devices]," Mulloy said.
Intel Labs Europe is joining a handful of French institutions to investigate large-scale computing challenges that face today's information technology industry.
The Exascale Computing Research Center will investigate machines that can perform 1,000 times more calculations than today's top supercomputers, Intel said, and the chipmaker is spending millions of dollars on the three-year partnership.
The effort also includes Commissariat a l'Energie Atomique, Grand Equipement National de Calcul Intensif, and the Universite de Versailles Saint-Quentin-en-Yvelines. Those organizations will jointly match Intel's investment, Intel said.
"France has taken a leading role in driving high-performance computing research in Europe. We chose to work with these three organizations because of their world-class software competency in exascale and high- performance computing," said Steve Pawlowski, general manager of the Intel Architecture Group's central architecture and planning, in a statement.
The move also raises the company's profile in a jurisdiction that's been tough on Intel. The chipmaker ended up on the losing end of a European Commission antitrust judgment, and is now appealing the resulting fine of 1.06 billion euros ($1.58 billion). Intel just settled a separate antitrust case brought by rival AMD.
Intel Labs Europe employs 900 researchers in Europe, the chipmaker said.
Intel Capital announced seven new investments Tuesday, including a storage systems company for Apple users and a cloud computing company.
"Innovation does not stop during economic slowdowns," Arvind Sodhani, president of Intel Capital and Intel executive vice president, said in a statement. "New technologies are the drivers of growth that help lead economies back to prosperity."
Investments as spelled out by Intel:
- Active Storage (Los Angeles) provides a media storage platform for Apple-based infrastructures. The company's hardware RAID (Redundant Array of Inexpensive Disks) solutions are aimed toward the business and creative industries, particularly video post-production, broadcast, publishing, education and science. The company intends to focus this round of funding on R&D and sales and marketing.
- Joyent (Sausalito, Calif.) provides cloud computing infrastructure and services to help customers develop, deploy and manage Web applications and sites, and to improve data center performance. Joyent's cloud computing technologies offer better performance, utilization rates, savings and security. Joyent will use the funding to accelerate its product development and for increased global expansion.
- Crucialtec (Cheon-Ahn City, Korea) is a manufacturer of specialized input devices that utilize optical technology for mobile phones, smart phones, and IPTV (Internet Protocol television) remote controllers. Crucialtec's Optical Trackball enables users to enjoy the full internet experience with mobile products as they do with a PC. Intel Capital's investment will help with the development of a new generation of mobile solutions for the global market by providing Crucialtec with additional working capital.
- Gudeng Precision Industrial (Taipei, Taiwan) is a semiconductor front-end equipment manufacturer that helps customers enhance product yield and reduce production costs. Presently, Gudeng Precision is the world's leading photomask and wafer handling total solution provider, and the company's products are accepted and certificated by worldwide tier-one customers. Gudeng Precision will use the funding to expand business in China and enhance working capital.
- V-Cube (Tokyo) develops and markets Web-based videoconferencing systems. Its flagship "nice to meet you" service enables one-to-one, one-to-many, and many-to-many interactive real-time communications and on-demand services over the Internet. Currently, V-cube is the largest service provider in Japan for Web-delivered visual communications. The investment will be used to further optimize the service for access from mobile Internet devices and Netbooks and to stream high-quality video over WiMAX wireless broadband networks.
- NeuString (Dubai, UAE) delivers predictive analytics software and consulting services to mobile network operators, helping companies to achieve greater financial performance. The NeuString Optiprizer software allows operators to optimize pricing, reduce leakage and get real-time reporting on operational metrics. The investment from Intel Capital will be used for sales and marketing build-out and new product development.
- Phoenix New Media (Beijing) provides dedicated and comprehensive portals to well-educated Chinese audiences of over 100 million. The portals, which are available on internet and mobile platforms, provide news and information generated from in-depth interviews, commentary columns, and social networks. The key features offered by Phoenix New Media help address Chinese netizens' diverse needs on information, expression, interaction and entertainment.
In addition, Onkyo, a Japanese company announced Monday that its board of directors has approved the issuance to Intel Capital of a bond having a face value of approximately $6.6 million, convertible into common shares of Onkyo at Intel Capital's option and a warrant to purchase common shares of Onkyo, Intel said. The convertible bond and the warrant would be issued to Intel Capital in December, subject to compliance with securities procedures and satisfaction of customary closing conditions.
The new deals total approximately $25 million, Intel said.
Intel unveils supercomputer chip, NEC partnership
The chipmaker has disclosed a version of its Xeon processor line optimized for high-performance computing. The company also announces it's teaming up with NEC.(Posted in Nanotech: The Circuits Blog by Brooke Crothers)
November 16, 2009 1:35 PM PST
Microsoft testing Excel for supercomputers
At the SC09 conference, Microsoft releases an updated version of Windows Server for high-performance computers as well as a compute cluster version of its Excel spreadsheet.(Posted in Beyond Binary by Ina Fried)
November 16, 2009 9:40 AM PST
Jaguar supercomputer races past Roadrunner in Top500
The Cray XT5 supercomputer known as "Jaguar" finally bests IBM after three tries. The top 10, while still dominated by supercomputers housed in the U.S., had just one newcomer.(Posted in Circuit Breaker by Erica Ogg)
November 15, 2009 9:00 PM PST
previous coverage
Roadrunner supercomputer maps HIV family tree
Researchers are using IBM's Roadrunner to analyze tens of thousands of genetic sequences from individuals with HIV in the hopes of zeroing in on vaccine target areas.(Posted in Health Tech by Elizabeth Armstrong Moore)
October 28, 2009 6:25 PM PDT
Supercomputer to use new Nvidia 'Fermi' chip
Oak Ridge National Laboratory announces plans for a new supercomputer that will use Nvidia's next generation GPU architecture.(Posted in Nanotech: The Circuits Blog by Brooke Crothers)
September 30, 2009 3:05 PM PDT
How Intel's supercomputer almost used HP chips
In the 1990s, Intel seriously considered building the world's fastest supercomputer with a rival's processors, but the Pentium Pro arrived in time after all.(Posted in Deep Tech by Stephen Shankland)
September 22, 2009 8:09 AM PDT
Intel on Monday disclosed a version of its Xeon processor line optimized for supercomputers and announced a partnership with NEC to develop future supercomputers.
At Supercomputing 2009 in Portland, Ore., Intel unveiled a future version of its "Nehalem-EX" processor optimized for supercomputers. The six-core chip will run at higher speeds than eight-core versions of the Nehalem-EX processors and will offer advantages for supercomputer specific tasks, Intel said in a statement. Intel also refers to supercomputing as high-performance computing, or HPC.
The chip architecture will offer greater memory speeds and capacity and will allow customers to build single computers or "nodes" with up to 256 such processors, according to Intel. This will be available next year, Intel said.
Intel said Monday that four out of every five supercomputers on the Top500 list published Monday are powered by Intel processors.
Intel also announced that it is partnering with Japan's NEC--that country's largest supercomputer vendor--to jointly develop technologies "that will push the boundaries of supercomputing performance," according to a joint statement.
NEC will use the technologies in future supercomputers based on the Intel Xeon processor and other technologies such as AVX (Advanced Vector Extensions), an extension to Intel's x86 instruction set architecture.
AVX will be used with Intel's upcoming Sandy Bridge microarchitecture due in 2011, according to Intel.
"With NEC further innovating on Intel Xeon processor-based systems, Intel is poised to bring Intel Xeon processor performance to an even wider supercomputing audience, " said Richard Dracott, general manager of Intel's High Performance Computing Group, in a statement.
Fumihiko Hisamitsu, general manager of HPC Division at NEC, said: "NEC's substantial experience in the development of vector processing systems...is a natural fit for taking Intel architecture further into new markets."
A vector processor design can perform operations on multiple data elements simultaneously. Intel Xeon chips are good at scalar processing, which handles one data item at a time.
The initial focus of the collaboration will be the development of technology to boost the memory speed and scalability--the latter refers to expanding a system to increase performance or capacity. "Such enhancements are intended to benefit systems targeting not only the very high end of the scientific computing market segment, but also to benefit smaller HPC installations," the two companies said.
NEC will also continue to sell its existing SX vector processor-based products. NEC, for example, currently markets the SX-9 supercomputer.
Advanced Micro Devices is not the only large Intel competitor to rail against Intel's alleged strong-arm tactics.
Nvidia has also complained loudly for years about Intel business practices in the graphics chip market, where Intel commands about 50 percent of the market.
Nvidia is the world's leading supplier of "discrete," or standalone, graphics chips but takes a distant second place in overall market share to Intel, which supplies "integrated" graphics built into the chipsets that accompany all of its processors. Mercury Research estimates the total market for graphics chips, including integrated graphics, at almost $10 billion in 2009.
In the third quarter, Intel had 53 percent of the graphics chip market, up from the 49 percent share in the same period last year, according to Jon Peddie Research, which tracks the graphics chip market. Nvidia took about 24 percent, down from the 28 percent in the third quarter of last year.
These figures get even more lopsided for Intel when the market is segmented into integrated graphics only. "Put your seatbelt on. They've got 80 percent of the notebook integrated market," said Jon Peddie, president of Jon Peddie Research. Though this is a much smaller and more segmented market than overall PC processor market, which was at the center of last week's $1.25 billion settlement between Intel and AMD, it still shows the level of Intel's dominance, according to Peddie.
Nvidia has taken to lampooning Intel. Here, CEO Paul Otellini is the object of satire on Nvidia's 'Intel's Insides' Web site.
(Credit: Nvidia)Nvidia claims these latter market share figures reflect Intel's "bundling" tactics--the same carrot-and-stick tactics that AMD has cited for years and that were spelled out in a complaint filed by New York's attorney general earlier this month.
Intel is trying to impede competition on two chipset fronts, according to Nvidia. One front is the burgeoning market for chipsets in Netbooks--tiny, inexpensive laptops that are typically priced around $350. In this market, Nvidia sells its Ion chipset, which competes with Intel's integrated graphics product.
"Intel's tactics with Ion have been the most aggressive we've seen from a competitor. They have offered the Atom [a total of three chips] for $25, but when the one-chip Atom is used with Ion, it sells for $45," Nvidia CEO Jen Hsun Huang said in a statement provided to CNET. "A customer can't even choose to resell the chipset and use Ion instead. What's the point of Nvidia getting an Intel bus license if it's impossible to overcome Intel's pricing bundles?" he asked, referring the licensing fee that Nvidia pays Intel.
"We'll keep growing as a company, but further action needs to be taken to protect consumers," Huang said.
Intel disputes this. "He's playing a trick of numbers, said Intel spokesman Chuck Mulloy. "He's giving you a $45 list price--that nobody pays--for a part and then a negotiated price (which is more realistic). He's mixing apples and oranges. We have scrubbed and continue to scrub our pricing practices as it relates to chipsets and processors. It's all above cost. And that meets the legal standard worldwide."
In Netbooks, Nvidia has made some headway this year; its Ion chipset has been used in Netbooks from Hewlett-Packard and Lenovo, among others--and Huang concedes this. But Peddie said Nvidia still faces a formidable challenge. "They're nibbling away it at. But it's a pretty big hill to climb," Peddie said.
In the second front of Nvidia's most hotly-contested feuds with Intel, the former has halted development of chipsets for Intel's new "Nehalem" processor technology (marketed as the Core i series of chips), following a complaint filed by Intel in February--which Nvidia then countered in March. Intel alleged in its motion for a declaratory judgment that the 4-year-old chipset license agreement with Nvidia does not extend to Intel's future-generation processors with "integrated memory controllers," which includes Intel's newest Nehalem Core i processors.
"It's meant to get Nvidia to cease and desist from citing that they have a license," Peddie said. "That's an interesting tactic because if the court rules in favor of keeping Nvidia from saying they have a license, it also creates the burden on the OEMs [PC makers] of not wanting to get in a crossfire between Nvidia and Intel," he said.
Intel again disputes this. "It's not seeking to prevent them from doing anything. For well over a year and including mediation, we argued with Nvidia about their rights under that agreement. And we tried multiple times to reach an agreement. And we could not," Mulloy said. "We asked the court to tell the parties what the agreement means. At the end of that process, we'll work with them and try to figure out what to do next."
Note: Mercury Research numbers were provided by Nvidia.
In a bit of a Thanksgiving appetizer, many companies were beefing up their structures by--as one of my colleagues put it--gobbling up other companies.
The biggest deal was announced by Hewlett-Packard, which plans to acquire 3Com, maker of network switching and routing products. The deal is valued at $2.7 billion, or $7.90 per share. HP says the purchase is intended to boost its networking business, particularly in China, where most of 3Com's business is focused.
The 3Com deal is the most recent in a string of enterprise-related acquisitions HP has made in the past year, including most recently file serving software maker Ibrix. HP wants to be a leader in providing customers with an integrated stack of computing technology ranging from servers and storage at the foundation all the way up to services.
Other deals
EA picks up Playfish for social gaming push
Electronic Arts makes some serious waves in the social gaming by acquiring Playfish for $275 million in cash and $25 million in equity.• A new set of rules for social games
Google to acquire AdMob for $750 million
Mobile advertising is AdMob's specialty, and the deal gives Google a technology inroad into a fast-growing segment of online advertising.• With AdMob, Google seeks mobile-ad advantage
Logitech buys video-conferencing firm LifeSize
Acquisition puts the maker of Webcams and other peripherals into the video-conferencing market.
More headlines
Intel to pay AMD $1.25 billion in antitrust settlement
AMD drops its litigation while Intel agrees to "abide by" a long list of prohibitions. And renewed patent cross-license agreement frees AMD to spin off chip manufacturing.• What Intel just bought for $1.25 billion: Less risk
• AMD-Intel deal: No big change for consumers
• AMD: Our claims about Intel have been 'ratified'
Windows 7 use continues to climb
It now makes up 4 percent of Web-accessing computers, a mark that took Windows Vista nearly seven months to reach.• Microsoft pulls Windows 7 download tool
• Microsoft probing Windows 7 zero-day hole
Microsoft bans 1 million Xbox Live players
Players who were caught modifying their consoles to play pirated games have been booted from the popular service.• Craigslist brimming with banned, 'modded' Xboxes
Google hopes to remake programming with Go
A Unix co-creator is among those behind a language Google hopes will speed computers and programming. Today, Go becomes open-source software.• Google hopes Go will give a browser boost
Research: Twitter has yet to grow into valuation
Company is worth significantly less than $1 billion, one company surmises. That's in part because the effectiveness of its possible business plan is still up in the air.• Judge bans Twitter from court
• Twitter issues mulligan on new 'retweet' feature
• Mint makes Twitter an investor hub
Microsoft denies Windows 7 is based on Mac OS
Following comments from a U.K. Microsoft executive that Windows 7 was designed to create "a Mac Look," a company blog post distances itself from his words.• Microsoft exec: Mac OS inspired Windows 7
Verizon tests sending RIAA copyright notices
The No. 2 phone company, known for its reluctance to intervene in antipiracy cases, has struck an agreement to forward copyright notices on behalf of the music industry.• Even in media mecca, plenty are willing to pirate
• Former RIAA chief tries to save Qtrax image
Expert says Adobe Flash policy is risky
Adobe Flash Player allows arbitrary content to access applications without permission, says researcher at Foreground Security.
As alternative energy grows, NIMBY turns green
With more renewable energy projects trying to come online, the country grapples with the balance between local land use and a national push for clean energy.• Students pitch green businesses for greenbacks
Also of note
• Bill Gates' home tour on charity auction block
• U.S. Army orders bridges made of recycled plastic
• Facebook status update saves man from jail
Now comes the hard part for Advanced Micro Devices. It has to compete with Intel on the merits of its products.
After settling with Intel and walking away with $1.25 billion, how competitive is AMD's silicon? Some experts weigh in.
Two analysts that follow Intel and AMD said separately that AMD won't be competitive until 2011--at the earliest.
"The only chance for reaching any kind of parity is in 2011. They don't have anything on the roadmap until then," said Ashok Kumar, an analyst at Northeast Securities. In the interim, AMD will get by with about one-fifth of the processor market, according to Kumar. But whether AMD can expand its market share beyond this and be profitable--like Intel--isn't clear. "Intel can leave 20 percent of the unit volume for AMD but (AMD) will have to come up with a business model where it can return to profitability based on this."
AMD may have a chance to expand into more profitable segments if it executes well in 2011, according to another analyst. "AMD believes it's on the cusp of another cycle where they will have strong product offerings compared with Intel. I think this happens in 2011," said Nathan Brookwood, the principal at Insight64. "The products are innovative and have tremendous potential," Brookwood said, referring to the particulars of new chip technologies that AMD disclosed at its analyst day on Wednesday.
But these are big ifs. AMD must close a yawning gap with Intel that's not going to get any smaller because of the legal settlement. "Technically, Intel now has a definitive advantage, which may widen," said Roger Kay, president of market researcher Endpoint Technologies. Kay believes that AMD will have trouble keeping up with the feverish pace, referred to as "cadence," that Intel sets as it moves to each successive generation of chip manufacturing technologies--which, in turn, allows Intel to quickly introduce performance and power efficiency improvements in its processors. "AMD tends to be six months to a year behind Intel," Kay said, citing a statement made by AMD CEO Dirk Meyer at the company's analyst meeting on Wednesday. AMD may begin to close the gap more in the future "but there's no telling whether that will happen," Kay said.
Will AMD's 'Fusion' lead to a resurgence?
(Credit: AMD)And if it doesn't happen, AMD becomes little more than a foil to keep Intel honest. "This settlement is actually proving the very point that Intel wants to keep AMD alive and able to compete at least in some small subset of the market, otherwise Intel will be faced with regulatory issues that they would rather avoid," said Avi Cohen, managing partner at Avian Securities.
AMD's best technology play to avoid this fate is "Fusion," Kay said, referring to a technology that combines the two key processors inside a PC: the main CPU processor and the graphics processor, or GPU. Fusion, however, isn't slated to come to market until 2011, according to the road map that AMD disclosed on Wednesday.
And what about today? Dan Ackerman, a senior editor at CNET Reviews and someone who regularly reviews AMD- and Intel-based laptops, makes an important point about the challenges AMD faces in the here and now: Intel-based laptops not only dominate the high end of the market but the low end, too. "Intel CPUs are found in almost all of the high-end systems (such as Core i7 laptops), and the low-end systems (Atom-powered Netbooks)," he said.
Ackerman said that AMD will be hard pressed to beat Intel head to head. "AMD has some room in to maneuver in the middle of the market--laptops from $600 to $900--but unless they can offer better performance for the same price, or a significant price discount to consumers, it'll be hard for the company to gain additional market share."
Rich Brown, a senior editor for desktops at CNET Reviews echoes Ackerman's sentiment: AMD competes by offering lower prices than Intel, not better performance. "From a tech standpoint, AMD's...desktop chips haven't been competitive since Intel launched Core 2 Duo. Instead, AMD has had to compete on price," Brown said.
The best action plan for AMD is to keep executing on key technologies and hope this eventually translates to market share gains. "AMD is rapidly developing a reputation for timely execution of marquee products/platforms," said Doug Freeman of Broadpoint AmTech in a research note. "AMD revealed that its newer platforms...are on track for [the first half of 2010]," he said, referring AMD's high-end server chip lines.
At the same time that Intel settled Advanced Micro Devices' antitrust lawsuit for $1.25 billion, the chipmaker settled another legal matter as well by hiring A. Douglas Melamed as its new top lawyer.
Melamed, who most recently worked as a partner at the law firm of WilmerHale, is expected to assume his new role this month, said a source familiar with the situation. Melamed has been based in Washington, D.C.
He has extensive antitrust experience, which could come in handy given Intel's remaining legal issues with the European Commission, the New York attorney general, and the Federal Trade Commission. From 1996 to 2001, he was acting assistant attorney general in charge of the Justice Department's Antitrust Division. Before that, he was the Justice Department's principal deputy assistant attorney general, where he was responsible for "civil non-merger and merger investigations and litigation involving most of the division's litigating sections; the division's appellate matters; policy matters involving, among others, the communications, electricity and tobacco industries; and international antitrust enforcement matters," according to WilmerHale.
Intel declined to comment on the matter. The Wall Street Journal reported the new hire Thursday.
Intel's previous general counsel, Bruce Sewell, left Intel to take the top legal job at Apple in September.
Even for a company as powerful as Intel, with $13 billion in cash on the books, $1.25 billion is a lot of money. So why drop that huge quantity of money in the lap of its biggest rival, Advanced Micro Devices?
The payment is, of course, to settle the antitrust suit AMD brought against Intel five years ago. AMD's stock surged 22 percent Thursday after the chipmakers announced the agreement, but Intel's share price dropped 1 percent, indicating which company the investors thought got the better deal.
Paul Otellini, speaking in September and holding a wafer of silicon chips
(Credit: Stephen Shankland/CNET)AMD does indeed come away with some serious perks--not just the cash, but also a new patent cross-license agreement that removes Intel's objections to AMD spinning off its chip-manufacturing business, enables multiple manufacturers to build AMD's chips, and eliminates the earlier patent agreement's payments to Intel. And it has Intel's agreement not to violate a list of restraints on its business practices.
But Intel gets something out of this, too.
Spend now, save later
Let's start with the money. Sure, shareholders likely frowned when they heard Intel's fourth-quarter expenses are expected to climb from $2.9 billion to about $4.2 billion. But Intel could have been out a lot more money if things had gone south.
In the European Union, Intel is wrestling with an antitrust case that produced a fine of 1.06 billion euros, or $1.6 billion at today's exchange rate. Intel appealed the European Commission fine, but it's a very concrete example of just how severe the Intel punishment could be.
There are other financial factors, too. Intel and AMD were set to begin their jury trial in March, and jury trials are famously unpredictable. Add on top of that risk the fact that antitrust suits can come with triple damages.
"It was a small multiple of the damage that could be awarded in a jury trial," Intel Chief Executive Paul Otellini said of the price tag in a conference call earlier Thursday.
Treble damages of the scale of just the European Commission fine would have been more than $4 billion, Technology Business Research analyst John Spooner observed. Facing that prospect, "Intel chose to control its own destiny and settle up front."
Taking commercial cases to a jury trial is indeed risky, said Richard Brosnick, who's involved in antitrust law at the firm of Butzel Long.
"Any complex commercial case going to the jury phase is challenging, and antitrust, given the economics, is probably more challenging," Brosnick said. "Trial is expensive overall, not in billions, but in terms of the risk you'll be able to explain these issues in a way that will be understood by and persuasive to a jury."
Goodwill in other antitrust cases
AMD's antitrust case isn't the only one Intel faces. It's also got the European Commission fine discussions, a new antitrust lawsuit from New York Attorney General Andrew Cuomo, and an antitrust investigation from the Federal Trade Commission.
The AMD settlement doesn't make those cases evaporate, but Intel hopes it'll help.
"We hope that having this major litigation settled with AMD would be viewed favorably by these regulatory bodies and eventually the cases would be dropped," Intel spokesman Tom Beerman said.
Certainly those regulators won't face as much of AMD's active prodding. Among the terms of the settlement is this, regarding all the regulatory actions AMD is involved in:
AMD agrees to promptly...notify in writing each authority...that except as provided in Section 3.5 AMD has resolved its disagreements with and complaints concerning Intel contained in that Administrative Complaint and believes that this Agreement provides AMD with fair compensation for any and all actual or alleged harm and damages that AMD did or may have suffered in connection with matters discussed in the Administrative Complaint. In addition, AMD agrees that it will not ghost-write or edit any other briefs, pleadings, or "friend of the court" or "friend of the tribunal" materials or briefs in any Administrative Action.
But whether Intel will actually get what it wants isn't certain.
"It's certainly possible that the public agencies will view this as a compromise they can live with, but it's equally possible not," Brosnick said.
One issue is Intel practices described in the section 3.5 mentioned above, where AMD and Intel still disagree. Brosnick said the governmental agencies still might be concerned about any of those practices--called "retroactive discounts," "accused bid bucket," and "accused end-user discounts" in the settlement.
Intel digging in its heels?
Though the agreement didn't preclude those practices as it did some others, it did agree not to defend them as hard as it might in settlement talks with the government organizations.
"Intel agrees that in the event it enters into voluntary settlement discussions with a government authority in the EC litigation, New York litigation, or the FTC investigation, and if such government authority proposes to include in a consent judgment or other governmental order a prohibition against Retroactive Discounts, Accused Bid Buckets or Accused End-User Discounts, Intel will not challenge such a prohibition as a general matter, although it may challenge the scope or specific language of the prohibition," the settlement agreement said.
Just how deeply Intel will dig in its heels in the other cases remains to be seen. Although it settled a big case, Otellini hardly sounded contrite. He reiterated on several occasions his belief that Intel didn't do anything illegal. He said airing the full context of seemingly incriminating e-mail would show Intel in a better light. And he vehemently attacked the New York case.
"We strongly disagree with the New York attorney general case and believe the complaint is entirely without merit," Otellini said. "Discounts and rebates are entirely fair business practices, and it's unfortunate the New York attorney general chose to distort the facts. We would have preferred to engage in a dialog with the New York attorney general."
Then again, Intel spoke in strong terms about the AMD trial. Perhaps Intel's pragmatic side will show in the other cases next.
