Intel, AMD settle chip disputeA bitter, seven-year legal...


January 12, 1995

Intel, AMD settle chip dispute

A bitter, seven-year legal fight ended yesterday as Intel Corp. and Advanced Micro Devices Inc. agreed to settle all their court disputes in a battle over whether Advanced Micro Devices had the right to make copies of Intel's industry-dominating microprocessor chip.

The legal battle has roots in a 1982 licensing agreement under which Advanced Micro Devices was given the rights to make versions of Intel's 386 microprocessor chip.

Under the agreement, Advanced Micro Devices will gain a license to Intel's software known as microcode that is embedded in each microprocessor and governs the chip's operations. Also, Intel will pay Advanced Micro Devices about $18 million for breach of contract.

Intel will receive $58 million for damages in one case involving the microcode in the 486 chip.

UAW, Caterpillar to resume talks

The United Auto Workers and Caterpillar Inc. announced yesterday that their negotiators will meet next week in Louisville, Ky., with a federal mediator in the first talks aimed at resolving a strike in almost seven months.

The union has been on strike at eight Caterpillar facilities in Illinois, Pennsylvania and Colorado since June 2. The two sides last met June 20.

Schering claims gain over Biogen

Firing a volley in a war over biotechnology patents, Schering AG, a German drugmaker, said yesterday that it had been awarded exclusive rights to a process being used by Biogen Inc. Biogen shares tumbled 16 percent.

A spokesman for Schering said the company and Stanford University had received on Dec. 27 a U.S. patent that gave Schering exclusive rights to produce beta interferon, an immune system hormone, from Chinese hamster ovary cells.

Cambridge, Mass.-based Biogen has been making beta interferon using that technique and plans to seek government approval for multiple sclerosis treatment soon in the next few months.

Shares of Biogen fell $6.875, to $35.375, in heavy Nasdaq trading.

Maurice Saatchi plans new agency

Advertising executive Maurice Saatchi said yesterday that he would launch a new firm, as the company he co-founded struggled to contain the damaging fallout from his acrimonious departure last week.

Since Mr. Saatchi was ousted as chairman of Saatchi & Saatchi last month, then cut all ties to the company last week, Saatchi & Saatchi has been in turmoil. Late yesterday, British Airways said it would end its contract with Saatchi & Saatchi Co. PLC, marking the first significant client loss for the London-based advertising company since Mr. Saatchi left.

Maurice Saatchi is using the working title the New Saatchi Agency for his company and said it will include some top executives who followed him in leaving his old agency.

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