As a result of the big settlement where Intel gave AMD $1.25 billion for doing some very naughty things including:

a) Offering inducements to customers in exchange for their agreement to buy all of their microprocessor needs from Intel, whether on a geographic, a market segment, a product segment or distribution channel basis

b) Offering inducements to customers in exchange for their agreement to limit or delay their purchase of microprocessors from AMD, whether on a geographic, a market segment or any other basis;

c) Offering inducements to customers in exchange for their agreement to limit their promotion, production or distribution of products containing AMD microprocessors;

d) Offering inducements to customers in exchange for their agreement to abstain from or delay their participation in AMD product launches, announcements, advertising or other promotional activities;

e) Offering inducements to retailers or distributors to limit or delay their purchase or distribution of computer systems or platforms containing AMD microprocessors; and

f) Witholding any benefit or threatening retaliation against anyone for their refusal to enter into a prohibited arrangement such as those set forth above

AMD and Intel want some major “takeaways” including the new AMD, Intel patent cross-license agreement. The announcement is part of AMD's Form 8-K filing with the SEC regarding the Company’s settlement and patent cross-license agreements with Intel.

According to that agreement Intel and AMD obtain patent rights from a new patent cross-license with a capture period that is now been extended to five years.

The licenses are now royalty free for both parties which means that AMD won’t have to pay anything for its most important X86 license. So, AMD and Globalfoundries have the right to freely make X86 devices.

Since this is a two way street, AMD will also give some patents to Intel and make the competition less exciting. Nehalem looks much like AMD’s Barcelona and AMD will concentrate on catching up with Intel and bringing innovations that should help the company in 2011 to introduce some cool products such as Fusion as well as its Bulldozer savior core.

We are quite sure that Intel will want to take a deeper look at AMD's memory controller and Hypertransport, the two things that AMD does for years and Intel just started doing.