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Re: dougSF30 post# 26165

Friday, 02/13/2004 3:31:34 PM

Friday, February 13, 2004 3:31:34 PM

Post# of 97796
If you read what you cited carefully, you will find support for the notion that IBM and Intel have a broad cross license.

Big Blue "prefers to trade tech rather than license tech" this is correct. Both Intel and IBM have strong semiconductor portfolios. Either company could stop the other from manufacturing a semiconductor. This is the MAD pricnciple that kept the Russians and the US from firing nuclear missles at each other. The solution: a peace treaty aka a patent license that trades all of our stuff for all of your stuff. In the licensing business this is called a "broad" cross license.

"IBM insisted on a trade, Intel might have to face a horrible taste in its mouth by giving away its "IP crown jewels" Intel would and Intel did. Remember Blue Lighting, a 386 clone? That was possible because of an Intel license. Competition must involve better products, better technology, better solutions.

Even bitter competitors such as AMD and Intel understand that a patent cross license is a better solution than endless war. But it did take Intel and AMD a bloody 10 year war to figure that out.

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