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Money Not Driving Lawsuit Against Intel, Claims AMD Lawyer

AUSTIN, Texas — The lawsuit filed Monday by Advanced Micro Devices Inc. alleging that Intel Corp. engaged in monopolistic activity "is not about the money, but about breaking open the market," claimed Chuck Diamond, the lead outside attorney for AMD on the case.

In a conference call with reporters Tuesday, Diamond, along with AMD's CEO Hector Ruiz and chief corporate counsel Tom McCoy, argued that Intel coerced major PC makers Dell, Sony, and Toshiba into buying Intel processors on an exclusive basis. Sony, for example, developed a successful notebook business in Europe, offering systems based on both AMD and Intel processors, McCoy said.

"That didn't sit well with Intel, and they told Sony that you are not going to sell any more computers based on AMD (processors). It was a clear, classic case of being abusive," McCoy said.

The suit claims Intel paid Sony "millions" for exclusivity. AMD's share of Sony's business plunged from 23 percent in 2002 to 8 percent in 2003. It currently sells no microprocessors to Sony.

Ruiz said, "Intel is a monopoly, pure and simple." McCoy added that being a monopoly, in and of itself, is not illegal. What Intel has done with its dominant market share, he claimed, is engage in a "global, massive effort to exclude AMD. It has used its 800-pound gorilla size to hold those companies captive."

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