The Sunnyvale, California based chipmaker - Advanced Micro Devices (AMD) has long been involved in litigation with Santa Clara, California based former partner and x86 creator Intel.

In a letter filed with AMD on Monday, Intel alleged AMD of breaching the x86 cross-license agreement, which orders the patent-sharing arrangement between the two rival chip makers, but AMD denied the charge.

According to Intel's allegation, AMD breached a 2001 patent agreement by creating its manufacturing arm as a joint-venture company - Globalfoundries, the $4.3 billion semiconductor manufacturer spun off from AMD.

"It believes that Global Foundries is not a subsidiary under terms of the agreement and is therefore not licensed under the 2001 patent cross-license agreement," Intel said in a statement.

Responding to Intel's allegation in its notification to Intel, AMD dismissed the Intel's allegation and stated that in fact Intel's actions had violated the cross-license agreement.

According to an Intel spokesman, Intel was willing to make the agreement made public, but AMD prevented it. Chuck Mulloy, an Intel spokesman, said, "We are willing to make the entire agreement public. We've told AMD we would be fine with making the entire agreement public. AMD has declined to do so."

Responding to it AMD agreed to make the terms of a cross-license agreement public. AMD stated that they are ready to reveal the agreement in public provided Intel lifted demands for confidentiality in the antitrust suit.

The vice president of marketing at AMD, Patrick Moorhead said, "We will make the entire cross-license agreement public if they drop their insistence on secrecy on the evidence in the U. S. antitrust case."

In the filing, Intel has threatened to terminate AMD's rights in 60 days if the alleged breach is not corrected. On the other hand, in a filing with the U. S. Securities and Exchange Commission, AMD, has stated that the agreement has not been breached by it, and asserted that Intel has no right to terminate rights and licenses covered by the agreement.

Interestingly, the two rival chipmakers have standing agreement to share intellectual property, but the two have long been fighting a legal battle in court.