Advanced Mico Devices Inc finally seems to have bested Intel Corp in its long-running battle over rights to the microcode in the 80386. The California Supreme Court has upheld the arbitrator’s award of rights to the microcode, which were not judged to be definitively explicit in the two companies’ second-source agreement in 1982 but were awarded by the arbitrator in recognition of Intel’s obstructive behaviour over the agreement. The decision ends litigation that began in 1987 when Advanced Micro brought suit to compel arbitration, alleging Intel had failed to honour its obligations under the technology exchange agreement. In 1993 a District Appeals panel ruled that the arbitrator had exceeded his jurisdiction and invalidated the award of technology rights but the Supreme Court action overrules the lower court decision and affirms the Superior Court’s judgement. And Intel will be back in court on January 17, the date set for a hearing to consider a motion for injunctive relief brought by a proposed class of buyers of its flawed Pentium chips. The Santa Clara County Superior Court has set a January 9 deadline for Intel to file an opposition brief and supporting evidence in the case. The plaintiffs seek a court order preventing Intel from selling flawed Pentium chips without noting they are defective; selling chips without offering a no-questions-asked replacement programme; requiring a deposit to replace flawed chips with new ones; refusing to provide neutral and extensive notice of the replacement program; and claiming consumers who have their chips replaced are barred from claiming damages arising from the flaw.
