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[Various] AMD R9 Fury X to be possibly impacted by Asetek lawsuit - Page 3

post #21 of 176
Quote:
Originally Posted by PostalTwinkie View Post

Dear God, this could really hurt AMD right now.

Not really........

If you read the article the licensing was 14.5% now its 25.375%, these coolers can go up to around $100 retail, but AMD definitely isnt paying that. AMD already has a contract with CM, and as such they cant just go and demand more money.

AMD will pay $0 more for the furyx's contracted to CM, and when that contract ends the price for the cooler may rise a whopping $5.


Also the tweet from OC3D at the bottom and on their twitter https://twitter.com/OC3D/status/646757707345731584 is wrong. They say the cooler may cost 24% more. Which is incorrect, CM has been paying the 14.5% since before the furyx, the cost is only going to be the additional 10%.
post #22 of 176
Thread Starter 
Just found another source for this, and I think it reveals a bit more information that is much more important:
Quote:
The court denied CMI's demands and instead issued the injunction that Asetek wanted. CMI and Cooler Master are now barred from selling "certain infringing products into the United States," which presumably include the aforementioned coolers.

In addition, a judge increased Asetek's damages award by raising the royalty rate to 25.375 percent. The enhanced royalty applies to CMI's revenues for sales of infringing products made since January 1, 2015.

That list of products in the Source are barred from sale in the United States because of the fact that they infringe on the cold plate design. This might actually affect AMD more than some people believe.

http://www.maximumpc.com/asetek-wins-another-round-of-litigation-against-cooler-master/
post #23 of 176
I doubt this will hurt the Fury X or AMD in any way whatsoever. For starters, I'm sure that AMD and CM have a contract for a certain number of the coolers at a certain price, meaning CM takes the hit, not AMD. Furthermore, the Fury X is not a volume product meant to pull in any serious revenue--it is merely a halo card for the purpose of advertising/showcasing tech. Even if the price on the cooler went up, AMD wouldn't be losing much by dropping the price of the whole package to compensate.
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post #24 of 176
Thread Starter 
Quote:
Originally Posted by alcal View Post

I doubt this will hurt the Fury X or AMD in any way whatsoever. For starters, I'm sure that AMD and CM have a contract for a certain number of the coolers at a certain price, meaning CM takes the hit, not AMD. Furthermore, the Fury X is not a volume product meant to pull in any serious revenue--it is merely a halo card for the purpose of advertising/showcasing tech. Even if the price on the cooler went up, AMD wouldn't be losing much by dropping the price of the whole package to compensate.

Look at the other sources, the patent being infringed upon is for Asetek's cold plate design. All Cooler Master products that utilize this design have been barred from sale in the United States. The cooler that Cooler Master designed for AMD and is being used for the Fury X also utilizes this cold plate design. While they might not have to pay anything, this might pose as a greater problem than a royalty fee.
post #25 of 176
Quote:
Originally Posted by Mand12 View Post

Quote:
Originally Posted by KyadCK View Post

No kidding. Ouch.

We need a smiley for wincing.

EDIT: If they can not charge us for buying CM AIOs, why would they be able to charge AMD? CM may be the one to bite the bullet for this one. I may be wrong, don't know the legalities.

CM is the one who has to pay the royalty fee. No one else.

So the question then becomes what does CM charge AMD for the cooler? Do they eat the 25.375% fee themselves, which probably negates their entire profit margin and then some? Or do they increase the price of the coolers they sell to AMD?

AMD is not in a position to easily change the cooling supplier. A change on that scale on a product where the cooler is an integrated component is not trivial. The load on AMD to support a modified design would be massive. They'd have to pick a different vendor, maybe giving up performance that they need to make the whole card viable, go through the design process, validation, and qualification. Then they'd need to support both designs moving forward, down to the detail of things like driver updates to make sure both cooler types still work properly, as they would both be warrantied products. It wouldn't be like it is now with third-party cooling, where you either void the warranty by putting your own cooler on it or rely on the board partner's warranty if they put on a non-reference cooler.

It would be a massive undertaking to change suppliers. Massively, massively costly.

Which means that CM to some degree has AMD over a barrel, and if they want to feed AMD the cost then AMD has very little recourse.

Unless they have already signed an agreement to sell X number of coolers for Y cost and that number is higher than the number of Fury Xs, in which case CM looses everything. Would CM be able to break a pricing agreement contract with AMD due to something like this?
Quote:
Originally Posted by s-x View Post

Quote:
Originally Posted by PostalTwinkie View Post

Dear God, this could really hurt AMD right now.

Not really........

If you read the article the licensing was 14.5% now its 25.375%, these coolers can go up to around $100 retail, but AMD definitely isnt paying that. AMD already has a contract with CM, and as such they cant just go and demand more money.

AMD will pay $0 more for the furyx's contracted to CM, and when that contract ends the price for the cooler may rise a whopping $5.


Also the tweet from OC3D at the bottom and on their twitter https://twitter.com/OC3D/status/646757707345731584 is wrong. They say the cooler may cost 24% more. Which is incorrect, CM has been paying the 14.5% since before the furyx, the cost is only going to be the additional 10%.

Assuming AMD doesn't need to re-sign a contract. If they bought a first batch under one, but they used all those coolers, they may need to sign another contract.
Quote:
Originally Posted by BiG StroOnZ View Post

Just found another source for this, and I think it reveals a bit more information that is much more important:
Quote:
The court denied CMI's demands and instead issued the injunction that Asetek wanted. CMI and Cooler Master are now barred from selling "certain infringing products into the United States," which presumably include the aforementioned coolers.

In addition, a judge increased Asetek's damages award by raising the royalty rate to 25.375 percent. The enhanced royalty applies to CMI's revenues for sales of infringing products made since January 1, 2015.

That list of products in the Source are barred from sale in the United States because of the fact that they infringe on the cold plate design. This might actually affect AMD more than some people believe.

http://www.maximumpc.com/asetek-wins-another-round-of-litigation-against-cooler-master/

That really hurts. Although if AMD's cards are assembled out of the states, is AMD allowed to still sell the card given it contains an infringing product?
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post #26 of 176
Thread Starter 
Quote:
Originally Posted by KyadCK View Post

That really hurts. Although if AMD's cards are assembled out of the states, is AMD allowed to still sell the card given it contains an infringing product?

That's why finding that particular information was crucial in the development of the story, which makes me question why OC3D didn't touch upon it. However, eTeknix did and I also added them to the source.

The most important aspect is that the Fury X uses the cold plate design. According to the sources, the Cooler Master coolers use this cold plate design. Which is why the royalty fee has been issued, and sale of these coolers has been barred. The tricky part here is that not only does AMD use Cooler Master coolers on their cards, the Cooler Master coolers that AMD uses also utilize this cold plate design as well (where the infringement on the patent applies).

I really don't see how this could NOT have an effect on AMD and the Fury X.
Edited by BiG StroOnZ - 9/23/15 at 4:30pm
post #27 of 176
So Asetek is patenting a design on design by AMD and claiming they've got rights over AMD's physical hardware design? Now this is just patent trolly. Asetek is pretty legit, but you can't patent a vital design of another person's hardware. It's like patenting the hinge.
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post #28 of 176
Thread Starter 
Quote:
Originally Posted by SpeedyVT View Post

So Asetek is patenting a design on design by AMD and claiming they've got rights over AMD's physical hardware design? Now this is just patent trolly. Asetek is pretty legit, but you can't patent a vital design of another person's hardware. It's like patenting the hinge.

Huh?

AMD is using a design on their GPU's that is patented by Asetek (because Cooler Master were the ones who supplied it).
Edited by BiG StroOnZ - 9/23/15 at 4:38pm
post #29 of 176
Quote:
Originally Posted by SpeedyVT View Post

So Asetek is patenting a design on design by AMD and claiming they've got rights over AMD's physical hardware design? Now this is just patent trolly. Asetek is pretty legit, but you can't patent a vital design of another person's hardware. It's like patenting the hinge.

 

Umm, what? The actual patent has nothing to do with AMD in a way. Because AMD was not the one that designed the AIO that is being used in the Fury X. Asetek is suing Cooler Master, not AMD.

 

However, this does affect AMD in other ways, in that the CM AIO that is in the Fury X is banned from sales in the USA. And that the consumer in the end is going to have to eat the increased royalty costs somewhere.

post #30 of 176
Quote:
Originally Posted by BiG StroOnZ View Post

Huh?

AMD is using a design on their GPU's that is patented by Asetek.

No Asetek is claiming patent on AMD's GPU layout design. Asetek is cockblocking various types of cooling methods for AMD or NVidia by saying they hold design of something as vital as a door hinge. You can't keep a processor cool without cooling.
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