Court dismisses part of AMD's case against Intel

Court dismisses part of AMD's case against Intel

A district court judge in the US state of Delaware has dismissed part of AMD'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 US 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 US lawsuit. Because the alleged harm was suffered outside the US and because AMD is seeking redress overseas, Intel argued that the allegations fall outside the jurisdiction of the US courts, according to a memorandum opinion from the court.

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

"AMD has not demonstrated that the alleged foreign conduct of Intel has direct, substantial and foreseeable effects in the US which gives rise to its claim. AMD's allegations, taken in the light of the most favourable 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," US District Judge, Joseph Farnan, wrote in his conclusion.

"We are pleased that the judge appears to have agreed with out legal argument to remove those aspects of the case outside US jurisdiction," Intel spokesperson, Chuck Malloy, said.

AMD could not immediately be reached for comment.

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