A Delaware jury has found that Arm breached its Architectural License Agreement with Qualcomm and acted to disrupt its business, yet awarded Qualcomm just $2 in total damages. Both companies published statements saying they were pleased with the verdict, though for very different reasons.
The two companies have been locked in legal battles for years. In 2022, Arm sued Qualcomm after the latter purchased Nuvia, which also licenses Arm's technologies. Arm argued that Qualcomm had not obtained the necessary permits to transfer Nuvia's licenses, constituting a breach of contract. Last year, Qualcomm announced a "complete victory" after the court dismissed Arm's remaining claims.
Qualcomm then sued Arm, citing information that emerged during discovery and comments made by Arm Holdings CEO Rene Haas on the stand. Reuters reports that after a five-day trial, the jury found Arm had breached its agreements by withholding software patches and tools for its designs. It also found that Arm intentionally interfered with Qualcomm's business deal with Meta. Qualcomm alleged that in 2024 Arm leaked to Bloomberg News that it had breached a licensing agreement just as a deal with Meta was about to close, causing a delay. The jury sided with Arm on four of Qualcomm's other claims.
Arm said the lawsuit was an attempt by Qualcomm to avoid paying "billions of dollars" under existing licensing agreements. Qualcomm said the verdict exposed Arm's "broader intentions to harm Qualcomm and its ecosystem." The fight is far from over, as US District Judge Maryellen Noreika is still expected to resolve several more disputes. If she sides with Qualcomm, the company could stop paying Arm royalties for five years, a penalty Arm argues is unenforceable under the contract.
Source: Engadget · Summarized by HeadlinesBriefing