Under a Byzantine agreement, Taipei-based VIA will be able to build products that are not only compatible with the x86 instruction set, but which are also hardware compatible with Intel’s own 32 bit architecture.
Intel initiated a series of legal actions in September 2001, accusing VIA of infringing on its patents. The first suit followed the launch of VIA’s P4 SDRAM chipset. Intel subsequently expanded its suit to cover VIA’s C3 microprocessor, and also filed suits in a number of other countries. VIA, for its part launched a series of countersuits.
Yesterday, the two companies announced they had reached a settlement covering 11 pending cases in five countries, covering 27 patents. Under the agreement, the companies will dismiss all their outstanding claims, and will enter into a ten year cross license agreement covering each other’s products.
In a statement, the companies said that as part of the agreement, Intel has granted VIA a license to build x86 compatible microprocessors, but that such products cannot be bus or pin compatible with Intel microprocessors.
However, the statement adds that for three years, Intel will not assert its patents on VIA bus or pin compatible microprocessors. Intel has also granted VIA a four year license to design and sell chip sets that are compatible with Intel’s microprocessor bus. Intel will not assert its patents on such chipsets for a fifth year. Intel will receive royalties on some products covered by the deal.
So, in effect, for five years VIA will be able to produce products that could be dropped into an Intel compatible motherboard. In the longterm, though, the deal pushes VIA off Intel hardware platforms. While Intel bugbear Advanced Micro Devices has long-produced x86 compatible processors, its products require different motherboard designs from Intel’s product.
Why Intel would want to authorize VIA to produce x86 compatible products is unclear. An Intel spokesman yesterday said the agreement wipes the slate clean, and said it had not climbed down from its earlier position. He would only say that while the two companies had not been able to agree on terms back in 2001, they clearly had been able to come to an agreement now.
However, the agreement certainly seems to open up the way for VIA to achieve a similar position to AMD, ie x86 compatible competition that Intel is prepared to tolerate, and which it can point to if competition authorities ever get on its back. At the same time, perhaps, now that Intel is off VIA’s back, the Taiwanese company, rather than competing with Intel head on, may decide to engage in a slugfest with AMD at the cheaper end of the market, leaving Intel to concentrate on more brand conscious corporate and private buyers.
Source: Computerwire
