Intel Corp Chairman and CEO Craig Barrett has spoken of a 'fundamental disagreement' with the FTC over its interpretation of antitrust law.

Chip-maker Intel has rejected the Federal Trade Commission (FTC)’s accusations that it applied monopoly power to limit competition, denying it had used unfair tactics in its relations with computer companies.

While its wider investigation of Intel rumbles on, the Federal Trade Commission (FTC) has cleared Intel Corp’s proposed acquisition of Digital Equipment Corp’s microprocessor business - provided Digital licenses its Alpha chip technology to at least three competitors, Samsung Electronics, Advanced Micro Devices and IBM.

The FTC settlement in the Intel/Digital matter continues the US antitrust enforcement agencies’ activist stance in the area of intellectual property rights. The agencies will closely examine the transfer of such rights between significant competitors, particularly where the transfer results from an out-of-court resolution of intellectual property litigation. As a result, parties should structure such arrangements so as to ensure that they do not unreasonably restrict opportunities and incentives for product and technological innovation.Ronan P HartyDavis Polk & WardwellNew York

The US Federal Trade Commission has announced it is to continue to investigate leading microchip producer Intel’s proposed acquisition of Chips and Technologies Inc, although it will not seek an injunction blocking the sale.