Intel Corporation v. Advanced Micro Devices, Inc.

Intel Corporation (Intel) appeals the district court’s order staying its copyright action against Advanced Micro Devices, Inc. (AMD). The stay was granted pending final state court appellate review of an arbitration award of license that, if upheld, would provide AMD with a defense to Intel’s claims of copyright infringement. Because we do not find that exceptional circumstances exist justifying a “wise judicial administration” stay under Colorado River Water Conservation District v. United States, 424 U.S. 800 , 96 S.Ct. 1236 , 47 L.Ed.2d 483 (1976), and because the stay cannot be upheld on the alternative grounds suggested by AMD, we reverse the stay order and remand to the district court for further proceedings.

BACKGROUND

Intel and AMD are semi-conductor companies which design, produce and market microprocessors. A' common practice within the microprocessor industry is the “second sourcing” arrangement, by which the creator of a newly developed product will license rights to manufacture the product to another company, receiving a royalty in return. Although both companies then market the same product in competition with one another, the existence of a second source for the…