SCHAUMBURG, Ill. -- Motorola Inc. and the former president of its semiconductor business, Hector de J. Ruiz, here have reached an out-of-court settlement in their suit over the alleged illegal recruitment of Motorola executives to Advanced Micro Devices Inc.
In January 2000, Ruiz surprised the industry and Motorola by deciding to join AMD as president and chief operating officer.
But nine months later, Motorola filed suit against Ruiz in Austin, Tex., seeking injunctive relief and damages. According to Motorola, Ruiz signed an agreement last year to not solicit or induce certain members of the company's senior management to join AMD. Motorola said Ruiz was paid a "substantial six-figure amount" in return for his promise (see Sept. 28, 2000, story).
At the time, AMD announced it had hired a former Motorola chip manager as its vice president of intellectual property. AMD had also announced it had hired a 24-year veteran of Motorola as its chief financial officer just prior to the announcement of the suit against Ruiz.
The lawsuit reportedly caused some tension between AMD and Motorola. Three years ago, Motorola and AMD entered into a broad-ranging strategic alliance covering a patent cross-licensing agreement and a joint effort to develop wafer-processing technologies for microprocessors and embedded flash memory.
A spokesman for AMD here today confirmed that Motorola and Ruiz reached a settlement, but declined to comment on the terms.