Intel Corp (INTC)

[Windsock]

Intel would have to prove that AMD was infringing its patents. However, a license is a defense to patent infringement and AMD would have to prove that it had a license.

At present,it appears the key issue is whether TFC is a subsidiary. AMD will have structured the transaction to give them every advantage in proving their case.

I think that a major part of AMD's strategy is to run out the clock until the License Agreement terminates in 2010. The TFC transaction will not be complete until early 2009. A few quarters of stalling and shouting about the antitrust law suit will move the clock closer to the end of the 2010. Perhaps AMD will insist that the license issue should become part of the antitrust

After the Agreement terminates, AMD can then begin to negotiate a new license that will allow coverage for TFC and perhaps even other foundries. Throw in some protracted litigation and AMD should easily be able to kick the can down the road until it ceases to exist in its present form.

Edit: As you indicated in your message to GB, what does AMD have to lose? Nothing, and it buys some time.