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Court dismisses part of AMD's case against Intel

Court dismisses part of AMD's case against Intel

A district court judge in the U.S. state of Delaware has dismissed part of Advanced Micro Devices's lawsuit against Intel.

The dismissed claims relate to alleged business practices of Intel that AMD claims affected sales of its own microprocessors.

Intel petitioned the court to have the claims dismissed because it said that while AMD is headquartered in the U.S. it manufactures its processors in Germany and assembles them in Malaysia, Singapore and China. AMD is already seeking damages through the Japanese courts, European Commission and Korea Fair Trade Commission for the same business practices that are alleged in the U.S. lawsuit. Because the alleged harm was suffered outside the U.S. and because AMD is seeking redress overseas, Intel argued that the allegations fall outside the jurisdiction of the U.S. courts, according to a memorandum opinion from the court.

AMD contended that it is not seeking such "foreign commerce claims" and that the x86 microprocessor market is a global market and that Intel's conduct in overseas markets had an effect on its business in the U.S.

"AMD has not demonstrated that the alleged foreign conduct of Intel has direct, substantial and foreseeable effects in the U.S. which gives rise to its claim. 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. Accordingly, the court will dismiss AMD's claims based on alleged lost sales of AMD's microprocessors to foreign customers," U.S. District Judge Joseph Farnan wrote in his conclusion.

Chuck Mulloy, an Intel spokesman, said, "We are pleased that the judge appears to have agreed with out legal argument to remove those aspects of the case outside U.S. jurisdiction." He declined further comment until a conference with the judge takes place on Wednesday.

AMD did not see the ruling as a setback in its global legal battle to change Intel's behavior.

"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," the company's Chief Administrative Officer and Executive Vice President of Legal Affairs Thomas M. McCoy said in a statement.

AMD will move ahead with the lawsuit and appeal the judge's decision, said Chuck Diamond, lead outside counsel for AMD, with the O'Melveny & Myers law firm. While Farnan limited AMD's claims in the case, the substance of the lawsuit hasn't changed, Diamond said.

"We'll be asking for the same documents from Intel and the OEMs," Diamond added. "This is the first of several appellate views that get expressed in this process and not the last word. We haven't had the judicial fat lady yet."


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