AMD 2000 Annual Report Download - page 18

In January 1995, we reached an agreement with Intel to settle all
previously outstanding legal disputes between the two companies. As part of the
settlement, in December 1995, we signed a five-year, comprehensive cross-license
agreement with Intel which expired on December 31, 2000. We are currently
negotiating a new agreement with Intel but there can be no assurance that a new
agreement will be successfully negotiated. The lack of a patent cross-license
with Intel could lead to expensive and time-consuming litigation, the outcomes
of which could have a material adverse effect on our business.
In addition, we have entered into numerous cross-licensing and technology
exchange agreements with other companies under which we both transfer and
receive technology and intellectual property rights. Although we attempt to
protect our intellectual property rights through patents, copyrights, trade
secrets and other measures, we cannot give any assurance that we will be able to
protect our technology or other intellectual property adequately or that
competitors will not be able to develop similar technology independently. We
cannot give any assurance that any patent applications that we may file will be
issued or that foreign intellectual property laws will protect our intellectual
property rights. We cannot give any assurance that any patent licensed by or
issued to us will not be challenged, invalidated or circumvented, or that the
rights granted thereunder will provide competitive advantages to us.
Furthermore, we cannot give any assurance that others will not independently
develop similar products, duplicate our products or design around our patents
and other rights.
From time to time, we have been notified that we may be infringing
intellectual property rights of others. If any claims are asserted against us,
we may seek to obtain a license under the third party's intellectual property
rights. We could decide, in the alternative, to resort to litigation to
challenge these claims. These challenges could be extremely expensive and time-
consuming and could materially and adversely affect our business. We cannot give
any assurance that all necessary licenses can be obtained on satisfactory terms,
or that litigation may always be avoided or favorably concluded.
Backlog
We manufacture and market standard lines of products. Consequently, a
significant portion of our sales are made from inventory on a current basis.
Sales are made primarily pursuant to purchase orders for current delivery, or
agreements covering purchases over a period of time, which are frequently
subject to revision and cancellation without penalty. Generally, in light of
current industry practice and experience, we do not believe that such agreements
provide meaningful backlog figures or are necessarily indicative of actual sales
for any succeeding period.
Employees
On January 31, 2001, we employed approximately 14,696 employees, none of
whom are represented by collective bargaining arrangements. We believe that our
relationship with our employees is generally good.
Executive Officers of the Registrant
W. J. Sanders III--Mr. Sanders, 64, is Chairman of the Board and Chief
Executive Officer of Advanced Micro Devices, Inc. Mr. Sanders co-founded AMD in
1969.
Hector de J. Ruiz--Dr. Ruiz, 55, is President and Chief Operating Officer
of Advanced Micro Devices, Inc. Dr. Ruiz joined AMD in January 2000. Before
joining AMD, Dr. Ruiz was President of Motorola Inc.'s Semiconductor Products
Sector. Dr. Ruiz held various executive positions with Motorola since 1977.
Benjamin M. Anixter--Mr. Anixter, 63, is Vice President, External Affairs
of Advanced Micro Devices, Inc., and has been since 1987. Mr. Anixter became a
corporate officer in April of 1999. He has been with AMD since 1971.
Robert R. Herb--Mr. Herb, 39, is Executive Vice President, Chief Sales and
Marketing Officer of Advanced Micro Devices, Inc. Mr. Herb joined AMD in 1983.
In 1998, Mr. Herb became an officer of AMD and was promoted to Senior Vice
President and Co-Chief Marketing Officer. From 1996 until 1998, Mr. Herb served
as the Vice President of Group Strategic Marketing for the Computation Products
Group. Before that, he was a director of marketing for the Personal Computer
Products Division.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001