Advanced Micro Devices Inc (AMD)

[Windsock]

AMD did not obtain the second source rights to the 386 -- period, end of subject.

The arbitrator only ordered an extension of the existing Agreement for coverage of the 386 of the Intel patent license and copyright license for some but not all microcode. The license extension covered the AMD "copied in Hong Kong" knock-off 386 that it started selling before the arbitration decision was made. No second source rights were awarded.

There were a number of other issues in the arbitration that were not related to the 386. Intel did lose on some of those issues and AMD lost on others.

On the big money issue in the arbitration Intel won. The AMD version of history omits the fact that AMD was ordered to pay the royalties on the 286 which it wrongly withheld.

You make the false statement that "Intel lost so bad that they were barred from further litigation" citing a book review in the Harvard Law Review. The statement of facts in the law review article is seriously in error. Most significantly, the law review author thought that the arbitration focused on 386 microcode and did not understand that second source rights include far more technology, i.e. the entire product design.

The author also makes the mistake that the trial court made an award when in fact the arbitrator issued the award. The issue that traveled through the state courts was whether the arbitrator had the power to grant an extension of the patent and copyright license. The California Supreme Court eventually ruled that the arbitrator did have that power.

The original proposed decision of the arbitrator tried to stop the existing federal litigation by barring Intel from continuing its already filed copyright lawsuit in the federal court. AMD attorneys pointed out to the arbitrator that this was beyond his power and requested the arbitrator to remove the bar on litigation.

The arbitrator removed the bar on litigation as requested by AMD and added a patent and copyright license extension in order to reach a final decision in the arbitration.