Qualcomm Wins Legal Battle Over Arm Chip Licensing, But Case Isn't Over Yet

Taylor Brooks

Taylor Brooks

December 21, 2024 · 3 min read
Qualcomm Wins Legal Battle Over Arm Chip Licensing, But Case Isn't Over Yet

A federal jury in Delaware has ruled in favor of Qualcomm in a legal battle over Arm chip licensing, determining that the chipmaker did not breach its agreement with Arm through its $1.4 billion acquisition of Nuvia, a startup founded by three former Apple engineers. The verdict marks a significant win for Qualcomm, but the case is far from over, as the jury was unable to determine whether Nuvia breached its agreement with Arm, leaving the door open for a retrial.

The two-year-long legal battle began when Arm accused Qualcomm of misusing the chip designs it licensed to Nuvia before the acquisition. Arm argued that the designs licensed to Nuvia were no longer valid and that Qualcomm should destroy the technology created with them. However, Qualcomm maintained that it had the right to use the licensed technology, and the jury ultimately sided with the chipmaker.

During the trial, testimony revealed that Qualcomm's internal documents showed the company projected it could save as much as $1.4 billion every year on payments to Arm. This revelation likely played a significant role in the jury's decision, as it suggests that Qualcomm's acquisition of Nuvia was motivated by a desire to reduce its royalty payments to Arm.

Despite the verdict, Arm CEO Rene Haas remains committed to the company's position, stating in an interview that "the principles as to why we filed the claim are unchanged." Haas was unable to share further details about the trial, but his comments suggest that Arm is unlikely to back down in its dispute with Qualcomm.

The jury's decision was influenced by Arm's internal documents, which estimated that the company could have lost $50 million in revenue as a result of Nuvia's acquisition. Additionally, Nuvia co-founder Gerard Williams testified that the startup only used "one percent or less" of Arm technology in its finished products, further supporting Qualcomm's position.

In a statement, Qualcomm's general counsel and corporate secretary, Ann Chaplin, hailed the verdict as a vindication of the company's right to innovate. "We will continue to develop performance-leading, world-class products that benefit consumers worldwide, with our incredible Oryon ARM-compliant custom CPUs," Chaplin said.

The outcome of this case has significant implications for the tech industry, particularly in the realm of chip licensing and intellectual property. As the case continues to unfold, it will be important to monitor its impact on the relationships between major tech companies and the development of next-generation chip technology.

For now, Qualcomm can breathe a sigh of relief, but the company knows that this verdict is far from the final word. As US District Court Judge Maryellen Noreika noted, "I don't think either side had a clear victory or would have had a clear victory if this case is tried again." The battle between Qualcomm and Arm is far from over, and the tech industry will be watching closely as the case continues to unfold.

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