Wondering what went on behind-the-scenes in the AMD and Intel negotiations that resulted in a $1.25 billion payment by Intel and the end of years-long acrimonious litigation?
Six months of negotiations, disagreements over who should pay whom and a long weekend in Maui.
Arik Hesseldahl of BusinessWeek talked to people on both sides of the settlement.
While Intel initially wanted payment for giving an AMD subsidiary access to its patents, AMD wanted a settlement payment — initial demands were in the billion of dollars — to drop its antitrust suits, Hesseldahl wrote.
When the parties hit a wall, the Intel Chief Administrative Officer suggested the parties use mediator Antonio Piazza, formerly of Gregorio, Halderman & Piazza.
Piazza met with the parties over a long two days in Maui (Piazza spends part of his time there and chose the location) — “There was no fun at the beach,” an attendee told Hesseldahl. A huge topic on that table that weekend was valuing the relevant patents, and outside patent lawyers were there to opine on those issues.
Besides Chief Administrative Officer Andy Bryant of Intel, as well as the respective general counsel’s and AMD’s Vice-President of legal affairs also joined the Maui meeting. It was at the end of that meeting the $1.25 billion figure was reached — it was “the amount at which neither side would storm out of the room,” an executive said.
Read the BusinessWeek article, which discusses how the parties’ decided not to let Andrew Cuomo’s suit against Intel derail the negotiations, here.
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