Replies to post #82491 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

Windsock

The second source Agreement gave AMD the right to earn second source rights to the 386 by providing Intel with certain AMD designs. The Arbitrator ruled that AMD did not earn the points needed to buy rights for the 386 because the design AMD offered was fat, slow and ugly. It was also commercially a total loser.

There were 2 arbitration rulings. The first ruling went pretty much in Intel's favor but was thrown out because the Arbitrator (Phelps if I remember correctly) owned about $50 worth or Intel stock through a mutual fund. The second ruling granted AMD rights to the 386. That was overruled by the Appeals court because the arbitrator overstepped his authority (the arbitration agreement explicitly denied the arbitrator the power to grant rights to the 386) but the California Supremes held their nose and let the arbitration ruling stand.