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By Dawn Kawamoto
Posted on ZDNet News: Jun 29, 2005 12:16:00 AM

Advanced Micro Devices will subpoena thousands of e-mail messages, including ones from its key partners if needed, to help prove its antitrust case against rival Intel, a lawyer for the chipmaker said.

Charles Diamond, a lawyer at O'Melveny & Myers and AMD's lead outside counsel, told CNET News.com on Tuesday that the computer makers, executives, retailers and other parties mentioned in the lawsuit may also find themselves in court and their documents subpoenaed.

"There is going to be a lot of 'he said, she said' in this case," Diamond said, noting that AMD's legal team is asking its potential witnesses to begin securing e-mail and other correspondence.

AMD filed its lawsuit against Intel Monday in U.S. District Court in Delaware. The Sunnyvale, Calif.-based chipmaker claims that Intel is using monopolistic business practices, such as threatening retaliation against customers that do business with AMD. It is asking the court to impose punitive damages.

Santa Clara, Calif.-based Intel has refuted the charges, calling its rival's legal case "full of excuses and speculation."

Attorney Diamond said his client initially based its complaint on some 80 interviews between AMD and its partners and customers. AMD's legal team said it will now use the "period of discovery," where companies may be required to submit corporate data as evidence, to fuel the chipmaker's case.

However, not all of the parties mentioned in AMD's 48-page brief are eager to discuss their relationship with Intel.

Computer makers from Dell to Hewlett-Packard declined to comment, as did Michael Capellas, former Compaq chief executive, and Ted Waitt, former Gateway CEO.

Analysts said it's no surprise these players wanted to remain mum on the topic.

"It's human nature," said Hans Mosesmann, a senior semiconductor analyst at Moors & Cabot. "No one wants to be dragged into someone else's fight."

Supermicro and AMD
The exception seems to be Supermicro Computer, which assembles systems for servers. AMD cited the company in its lawsuit as being reluctant to use AMD's chips.

"Supermicro, the preeminent system assembler for servers and other high-end computers, historically has followed the Dell strategy of never buying from AMD. This arrangement foreclosed AMD from a large part of the approximately one-fifth of the server sector not controlled by the Tier One (PC makers)," AMD stated in its complaint.

But after two years of negotiations, Supermicro agreed last year to begin developing a server powered by an AMD Opteron processor.

"We use AMD for our customers (that make hardware), and it's a small percent," said Michael Kalodrich, a Supermicro spokesman. "We had some pressure from our customers for quite some time to carry AMD, and we decided to do it to better serve them."

Last May, Supermicro began carrying AMD's chips, Kalodrich said.

AMD's brief includes various reports of Intel's interactions with some 38 companies, including large-scale computer makers, small system builders, wholesale distributors and retailers.

Among AMD's charges against Intel in the suit:

  • Intel paid Sony multimillion-dollar sums in 2003, disguised as discounts and promotional support, in exchange for absolute microprocessor exclusivity. Sony abruptly canceled an AMD Mobile Athlon notebook model.
  • Intel paid Toshiba a "very substantial" amount in 2001 not to use AMD processors. Toshiba thereupon dropped AMD. Its executives told AMD that Intel's financial inducements amounted to "cocaine."
  • In the summer of 2002, Fujitsu informed AMD that Intel had pressured the Japanese PC maker to remove Fujitsu's AMD-powered desktop models from its Web site.
  • Intel issued a "special discount" on Celeron processors that Fujitsu-Siemens accepted, in exchange for hiding its AMD computers on its Web site and removing all references to commercial AMD-powered products in the company's retail catalog.

Advanced Micro Devices will subpoena thousands of e-mail messages, including ones from its key partners if needed, to help prove its antitrust case against rival Intel, a lawyer for the chipmaker said.

Charles Diamond, a lawyer at O'Melveny & Myers and AMD's lead outside counsel, told CNET News.com on Tuesday that the computer makers, executives, retailers and other parties mentioned in the lawsuit may also find themselves in court and their documents subpoenaed.

"There is going to be a lot of 'he said, she said' in this case," Diamond said, noting that AMD's legal team is asking its potential witnesses to begin securing e-mail and other correspondence.

AMD filed its lawsuit against Intel Monday in U.S. District Court in Delaware. The Sunnyvale, Calif.-based chipmaker claims that Intel is using monopolistic business practices, such as threatening retaliation against customers that do business with AMD. It is asking the court to impose punitive damages.

Santa Clara, Calif.-based Intel has refuted the charges, calling its rival's legal case "full of excuses and speculation."

Attorney Diamond said his client initially based its complaint on some 80 interviews between AMD and its partners and customers. AMD's legal team said it will now use the "period of discovery," where companies may be required to submit corporate data as evidence, to fuel the chipmaker's case.

However, not all of the parties mentioned in AMD's 48-page brief are eager to discuss their relationship with Intel.

Computer makers from Dell to Hewlett-Packard declined to comment, as did Michael Capellas, former Compaq chief executive, and Ted Waitt, former Gateway CEO.

Analysts said it's no surprise these players wanted to remain mum on the topic.

"It's human nature," said Hans Mosesmann, a senior semiconductor analyst at Moors & Cabot. "No one wants to be dragged into someone else's fight."

Supermicro and AMD
The exception seems to be Supermicro Computer, which assembles systems for servers. AMD cited the company in its lawsuit as being reluctant to use AMD's chips.

"Supermicro, the preeminent system assembler for servers and other high-end computers, historically has followed the Dell strategy of never buying from AMD. This arrangement foreclosed AMD from a large part of the approximately one-fifth of the server sector not controlled by the Tier One (PC makers)," AMD stated in its complaint.

But after two years of negotiations, Supermicro agreed last year to begin developing a server powered by an AMD Opteron processor.

"We use AMD for our customers (that make hardware), and it's a small percent," said Michael Kalodrich, a Supermicro spokesman. "We had some pressure from our customers for quite some time to carry AMD, and we decided to do it to better serve them."

Last May, Supermicro began carrying AMD's chips, Kalodrich said.

AMD's brief includes various reports of Intel's interactions with some 38 companies, including large-scale computer makers, small system builders, wholesale distributors and retailers.

Among AMD's charges against Intel in the suit:

  • Intel paid Sony multimillion-dollar sums in 2003, disguised as discounts and promotional support, in exchange for absolute microprocessor exclusivity. Sony abruptly canceled an AMD Mobile Athlon notebook model.
  • Intel paid Toshiba a "very substantial" amount in 2001 not to use AMD processors. Toshiba thereupon dropped AMD. Its executives told AMD that Intel's financial inducements amounted to "cocaine."
  • In the summer of 2002, Fujitsu informed AMD that Intel had pressured the Japanese PC maker to remove Fujitsu's AMD-powered desktop models from its Web site.
  • Intel issued a "special discount" on Celeron processors that Fujitsu-Siemens accepted, in exchange for hiding its AMD computers on its Web site and removing all references to commercial AMD-powered products in the company's retail catalog.

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  • Most Recent of 137 Talkback(s)
Does ZDNet protect actions against humanity?
Did someone order ZDNet to delete any message against the abusers of power under an excuse that ZDNet believes that if the abusers don?t want to be exposed ? they cannot be exposed?

Or to say i... (Read the rest)
Posted by: Vily Clay Posted on: 07/01/05 You are currently: a Guest | | Terms of Use
I'm no lawyer, but I hate it when companies don't compete straight up.  DonnieBoy | 06/28/05
Exactly Donnie  Tim Patterson | 06/28/05
More will rething AMD. As in CYA.  No_Ax_to_Grind | 06/29/05
A small price to pay in order to get better processors at lower prices.  DonnieBoy | 06/29/05
HUH, they can buy the cheap brand right now if they want.  No_Ax_to_Grind | 06/29/05
Huh? You saying processors won't get cheaper and better??  DonnieBoy | 06/29/05
I don't see how....  No_Ax_to_Grind | 06/29/05
Yes, Intel has been doing a good job of starving them.  DonnieBoy | 06/29/05
By the way, there is nothing cheap about it.  No_Ax_to_Grind | 06/29/05
Only a few will be working on providing evidense.  DonnieBoy | 06/29/05
Are you kidding? (or clueless on court cases?)  No_Ax_to_Grind | 06/29/05
Man give it a break. These companies will have to go and testify once.  DonnieBoy | 06/29/05
Next news ? Microsoft may not support AMD's 64-Bit chips but Intel.  Vily Clay | 06/28/05
Maybe...  Tim Patterson | 06/28/05
AMD's chips are far from inferior  bweir13 | 06/29/05
Intel released dual core ahead of AMD.  ShadeTree | 06/29/05
Pedant alert!  tic swayback | 06/29/05
Yes mommy  balsover | 06/29/05
No, but I play his mother on tv  tic swayback | 06/29/05
ummm no!  doh123 | 06/29/05
Evidence  mabricen | 06/29/05
Evidence??  JusPassinThrough | 06/29/05
Get current!  ShadeTree | 06/29/05
Gee, seems to run fine here, what is your problem?  No_Ax_to_Grind | 06/29/05
Message has been deleted.  Vily Clay | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
It's you  rapson | 06/29/05
HUH?  vinnie327 | 06/29/05
Wow, you STILL have no clue why your mind is the biggest B.G?s treasure. NT  Vily Clay | 06/29/05
When you attempt to be clever...  balsover | 06/29/05
So far brains are not an attribute of your head. (NT)  Vily Clay | 06/29/05
Wow, the ZDNet censor also cannot read between the lines.  Vily Clay | 07/01/05
The deleted message.  Vily Clay | 07/01/05
Does ZDNet protect actions against humanity?  Vily Clay | 07/01/05
We'll see how many people Intel can buy off...  realitycheck101 | 06/28/05
Well, they just bought off Apple!  georgep_z | 06/29/05
Who?s buying the industry ? Intel or Bill Gates or who?s behind Intel? (NT)  Vily Clay | 06/29/05
Apple just didn't want to go so slow anymore  zeusfuse | 06/29/05
I think that since OSX for Intel was always around in  Laff | 06/29/05
No worries, it won't be you being paid anything.  No_Ax_to_Grind | 06/29/05
Oh smart move, their CUSTOMERS wil love them now.  No_Ax_to_Grind | 06/29/05
You just never let up, do you?  Roger Ramjet | 06/29/05
No. But that is beside the point.  No_Ax_to_Grind | 06/29/05
Weak analogy  Letophoro | 06/29/05
Of course, that is why it's called an analogy.  No_Ax_to_Grind | 06/29/05
I think businesses are beyond that  tic swayback | 06/29/05
All depends tic...  No_Ax_to_Grind | 06/29/05
Greed will win out over hurt feelings  tic swayback | 06/29/05
Maybe tic....  No_Ax_to_Grind | 06/29/05
If all things are equal, then yes...  tic swayback | 06/29/05
selective reasoning  Dave F_z | 06/29/05
laws up to interperetation  toadlife | 06/29/05
A little time testifying and providing other evidence will be well worth it  DonnieBoy | 06/29/05
Bull  No_Ax_to_Grind | 06/29/05
A "little" time? Are you daft?  No_Ax_to_Grind | 06/29/05
Look, Personal Attack By No_Ax - Hypocrite Observation 1  itanalyst | 06/29/05
Then you go testify  voska | 06/29/05
Testifying is not the big issue here  tic swayback | 06/29/05
I think that in the long run the customers will benefit  balsover | 06/29/05
Oh smart move, their CUSTOMERS wil love them now.  JusPassinThrough | 06/29/05
RE: smart move  JakAttak | 06/29/05
Who doesn't know this?  ceegh | 06/29/05
Yes, you got it  Tim Patterson | 06/29/05
As I said before, AMD can't compete.  No_Ax_to_Grind | 06/29/05
What?  Tim Patterson | 06/29/05
Afraid not...  No_Ax_to_Grind | 06/29/05
Superficial  Tim Patterson | 06/29/05
I see your mistake...  No_Ax_to_Grind | 06/29/05
Repost - Link not working  No_Ax_to_Grind | 06/29/05
boxing match  MIS Master | 06/29/05
"Me too" rarely works.  No_Ax_to_Grind | 06/29/05
I can do it, and I can do it better  MIS Master | 06/29/05
I just don't see it.  No_Ax_to_Grind | 06/29/05
You are missing the point...  balsover | 06/29/05
Oh, So You Are Saying It's Ok For Companies To Use Strongarm Tactics?  itanalyst | 06/29/05
Show me your proof, not "he said/she said". (nt)  No_Ax_to_Grind | 06/29/05
Here's Some Proof  itanalyst | 06/29/05
Proof?  No_Ax_to_Grind | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
Sad maybe, but lonely?  rapson | 06/29/05
ROFLMAO  No_Ax_to_Grind | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
I-35  rapson | 06/29/05
Carl, you got me rolling...  No_Ax_to_Grind | 06/29/05
Enough Dump Trucks And Steamrollers Going To The Site  itanalyst | 06/29/05
Amazing...  HurstOlds | 06/29/05
Bravo!! Well-Spoken!!  itanalyst | 06/29/05
Amazingly sad...  No_Ax_to_Grind | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
Message has been deleted.  Prognosticator | 06/30/05
I pegged you perfectly.  HurstOlds | 06/29/05
Bravo Again My Good Man!!  itanalyst | 06/29/05
Ah I see, anyone disagreeing with you is a troll.  No_Ax_to_Grind | 06/29/05
"just how ludicrace they are"  kbeartxzd | 07/01/05
Ludicrous (really)  HurstOlds | 07/01/05
AMD architecture technically superior  Robert Crocker | 06/30/05
My Prediction (Ala Karnak-Bitty)  itanalyst | 06/29/05
AXless  sa_z | 06/29/05
When you can't debate, make personal attacks.  No_Ax_to_Grind | 06/29/05
Debate? Is that what you call it?  sa_z | 06/29/05
You Can't Debate With Mentally Retarded People Like No_Ax  itanalyst | 06/29/05
In your case? No, it was a personal attack  No_Ax_to_Grind | 06/29/05
AMD Does Have A Point, And I Should Know.  itanalyst | 06/29/05
Then you should be fired.  No_Ax_to_Grind | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
Message has been deleted.  itanalyst | 06/29/05
So your saying you lack the courage...  No_Ax_to_Grind | 06/29/05
Whistleblower? I Think Not  itanalyst | 06/29/05
Of course not, that takes courage.  No_Ax_to_Grind | 06/29/05
Oh, Ok, I'm On A Plane To The Pentagon  itanalyst | 06/29/05
Are you suggesting...  vferrara | 06/29/05
Anybody Waste Their Time Watching Bush Last Night?  itanalyst | 06/29/05
Email is a GREAT strategy  Prognosticator | 06/29/05
I tend to agree  No_Ax_to_Grind | 06/29/05
WRONG  itanalyst | 06/29/05
A logical argument?  HurstOlds | 06/29/05
Your approval isn't required.  No_Ax_to_Grind | 06/29/05
Ooooh, that hurts.  HurstOlds | 06/29/05
Not meant to in anyway.  No_Ax_to_Grind | 06/29/05
facts / no facts...  HurstOlds | 06/29/05
Well then, lets debate facts.  No_Ax_to_Grind | 06/29/05
Promise, Troll, PROMISE!  Reverend MacFellow | 06/29/05
I promice...  No_Ax_to_Grind | 06/29/05
Which is why...  rapson | 06/29/05
Unfair and inaccurate..  HurstOlds | 06/29/05
Your assement is unfair.  No_Ax_to_Grind | 06/29/05
Assessment..  HurstOlds | 06/29/05
e-discovery of email  mdecker | 06/29/05
When you can't compete, Cheat!  Reverend MacFellow | 06/29/05
When you can't compete, whine to the courts.  No_Ax_to_Grind | 06/29/05
Yeah You Should Know About Working "Both Ways"  itanalyst | 06/29/05
HurstOlds....  No_Ax_to_Grind | 06/29/05
I see you "pick" your posts...  No_Ax_to_Grind | 06/29/05
Antagonizing  HurstOlds | 06/30/05
My money IS where my mouth is...  HurstOlds | 06/30/05
email  wrocamb | 06/29/05
Why can't anybody SPELL correctly?  kbeartxzd | 07/01/05

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