AMD 1995 Annual Report Download - page 24

will be compatible with all standard PC software or hardware. Any inability of
AMD's customers to achieve such compatibility or compatibility with other
software or hardware after AMD's products are shipped in volume would have a
material adverse effect on AMD's business and operating results. There can be no
assurance that AMD will be able to successfully correct any such compatibility
or other product defect problems that are discovered or that such corrections
will be acceptable to customers or made in a timely manner. In addition, the
announcement of a product defect in AMD's products or incompatibility could have
a material adverse effect on AMD.
Earthquake Danger. AMD's corporate headquarters, a portion of its
manufacturing facilities, assembly and research and development activities and
certain other critical business operations are located near major earthquake
fault lines. AMD's operating results and financial condition could be
materially adversely affected in the event of a major earthquake.
Intellectual Property and Licensing
AMD and its subsidiaries have been granted 972 United States patents, and
approximately 872 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.
On January 11, 1995, the Corporation and Intel reached an agreement to
settle all previously outstanding legal disputes between the two companies. As
part of the settlement, in December 1995, the Corporation signed a five-year,
comprehensive patent cross-license agreement with Intel which expires on
December 31, 2000. The agreement provides that after December 31, 1999, the
parties will negotiate in good faith a patent cross-license agreement to be
effective January 1, 2001. Effective January 1, 1996, the new agreement gives
the Corporation
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Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996