AMD Receives Blow to Intel Lawsuit

by , 4:55 PM EDT, September 27th, 2006

Advanced Micro Devices (AMD) on Wednesday saw part of its lawsuit against Intel dismissed by a district court judge who wrote: "AMD's allegations, taken in the light of the most favorable to AMD, describe a foreign effect and a foreign harm that have had ripple effects for the domestic market, but have not had any direct, substantial or reasonable effect which would give rise to an antitrust claim within the jurisdictional reach of the Sherman Act."

The judge's decision concluded: "Accordingly, the court will dismiss AMD's claims based on alleged lost sales of AMD's microprocessors to foreign customers." An IDG News article said that Intel sought to have the claims dismiss because AMD manufacturers processors in Germany and assembles them in the Far East. With AMD already seeking damages through overseas courts, Intel argued that the claims against it were outside U.S. courts' jurisdiction.

An Intel spokesman commented to IDG: "We are pleased that the judge appears to have agreed without legal argument to remove those aspects of the case outside U.S. jurisdiction."

Thomas M. McCoy, AMD's chief administrative officer and executive vice-president of legal affairs, countered: "Notwithstanding the judge's ruling today, Intel cannot escape antitrust scrutiny for its conduct, wherever in the world it occurs. As this U.S. litigation is joined by global antitrust investigations, it is clear that Intel cannot escape the consequences of its illegal monopoly abuses."