AMD 1994 Annual Report Download - page 12

INTELLECTUAL PROPERTY AND LICENSING
The Corporation and its subsidiaries have been granted 820 United States
patents, and approximately 469 patent applications are pending in the United
States. In certain cases, the Corporation has filed corresponding applications
in foreign jurisdictions. The Corporation expects to file future patent
applications in both the United States and abroad on significant inventions as
it deems appropriate. The Corporation has entered into numerous cross-licensing
and technology exchange agreements under which it both transfers and receives
technology and intellectual property rights. Although the Corporation attempts
to protect its intellectual property rights through patents, copyrights, trade
secrets and other measures, there can be no assurance that the Corporation will
be able to protect its technology adequately or that competitors will not be
able to develop similar technology independently. There can be no assurance
that any patent applications that the Corporation may file will be issued or
that foreign intellectual property laws will protect the Corporation's
intellectual property rights. There can be no assurance that any patent
licensed by or issued to the Corporation will not be challenged, invalidated or
circumvented or that the rights granted thereunder will provide competitive
advantages to the Corporation. Furthermore, there can be no assurance that
others will not independently develop similar products, duplicate the
Corporation's products or design around the patents licensed by or issued to the
Corporation.
From time to time AMD has been notified that it may be infringing
intellectual property rights of others. If any such claims are asserted against
the Corporation, the Corporation may seek to obtain a license under the third
party's intellectual property rights. The Corporation could decide, in the
alternative, to resort to litigation to challenge such claims. Such challenges
could be extremely expensive and time consuming and could materially adversely
affect the Corporation's business, financial condition and results of
operations. No assurance can be given that all necessary licenses can be
obtained on satisfactory terms, nor that litigation may always be avoided. (See
also Item 3, Legal Proceedings, Number 2.)
EMPLOYEES
On December 25, 1994, AMD and its subsidiaries employed approximately
11,800 employees.
ITEM 2. PROPERTIES
The Corporation's principal engineering, manufacturing, warehouse and
administrative facilities comprise approximately 2 million square feet and are
located in Santa Clara County, California and in Austin, Texas. (See Item 1,
Manufacturing and Item 7, Management's Discussion). Over 1.25 million square
feet of this space is in buildings owned by the Corporation.
In 1992, the Corporation entered into certain operating leases and an
arrangement for the purchase of certain property containing a building with
approximately 318,000 square feet, located on 45.6 acres of land in Sunnyvale,
California (One AMD Place). In early 1994, the Corporation began utilizing One
AMD Place for its corporate sales, marketing and administrative offices. This
arrangement provides the Corporation with the option to purchase One AMD Place
during the lease term. At the end of the lease term, the Corporation is
obligated to either purchase One AMD Place or arrange for the sale of One AMD
Place to a third party with a guarantee of residual value to the seller of One
AMD Place. In 1993, the Corporation entered into a lease agreement for
approximately 175,000 square feet located adjacent to One AMD Place to be used
in connection with One AMD Place.
The Corporation also owns or leases facilities containing approximately
722,800 square feet for its operations in Malaysia, Singapore and Thailand.
(See Item 1, Manufacturing and Item 7, Management's Discussion). Of the entire
9
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995