SANTA CLARA, Calif., Sept. 1, 2005 – Intel Corporation today filed its response to a lawsuit recently initiated by Advanced Micro Devices (AMD) regarding Intel’s business practices. In the response, Intel refutes AMD’s claims and states that its business practices are both fair and lawful.
The Intel response explains that AMD’s claims are factually incorrect and contradictory. In addition, AMD’s complaint — by attempting to impede Intel’s ability to lower its prices — would hurt consumers, not help them.
“Innovation, investment, customer focus and great products have led to Intel’s success over the years,” said Bruce Sewell, Intel general counsel. “These are the things that have been fundamental to our decision making as we’ve sought to move the industry and the pace of technology forward.
“Likewise, AMD has made its own business decisions and choices that have determined its position in the marketplace. Yet, with its lawsuit, AMD seeks to instead blame Intel for the many business failures AMD has experienced that are actually a direct result of AMD’s own actions or inactions.”
In its response filed today with the U.S. District Court in Delaware, Intel described the semiconductor industry business model that has led to phenomenal growth and steadily increasing value to customers over the years. That business model is based on three fundamental principles: production, product and price. The Intel response indicates that “AMD’s choices and behaviors with respect to each of these core principles over the period covered by the complaint provide a compelling answer to the allegations it has made in this case.”
Intel’s response further states, “AMD’s complaint presents a case study in legal dissonance. Although AMD has purportedly brought its complaint to promote competition, its true aim is the opposite. Under the cover of competition law, AMD seeks to shield itself from competition. AMD seeks to impede Intel’s ability to lower prices and thereby to allow AMD to charge higher prices. AMD’s colorful language and fanciful claims cannot obscure AMD’s goal of shielding AMD from price competition.”
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