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Intel-AMD Chip Patent Deal Approved.(Originated from San Jose Mercury News, Calif.)

Knight Ridder/Tribune Business News, January, 1996 by Takahashi, Dean

Jan. 10--Perhaps the chip industry's era of gazillion-dollar lawsuits is over.

Intel Corp. and Advanced Micro Devices Inc. buried their last lingering legal issue Friday by announcing they will grant each other access licenses to patents on each other's chips for the next five years.

The agreement is good news both for consumers and computer manufacturers,

since it probably ensures that any new computer chips made by either company will be compatible with each other. Essentially, it allows AMD to create its own versions of Intel's x86 architecture chips that will be able to run the same software that runs on Intel machines.

Intel and AMD had been negotiating the agreement since January as the end game to an historic agreement last year. The...

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