In a significant legal victory, Qualcomm has won a key court battle against Arm Holdings over a licensing dispute. The federal jury in Delaware ruled that Qualcomm did not violate Arm’s licensing agreement when it acquired chip design startup Nuvia for $1.4 billion in 2021. This decision allows Qualcomm to continue developing custom CPU cores obtained through the Nuvia acquisition without facing additional licensing fees.
However, the jury could not reach a consensus on whether Nuvia itself breached its original licensing agreement with Arm, leading to a partial mistrial. U.S. District Court Judge Maryellen Noreika has suggested mediation between the two tech giants to resolve the remaining issues. Arm has announced its intention to seek a retrial to protect its interests in the chipset market.
Qualcomm’s CEO, Cristiano Amon, hailed the verdict as a vindication of the company’s right to innovate and continue developing high-performance chips. The outcome is crucial for Qualcomm’s strategy to compete with Intel and AMD in the PC market through its Snapdragon X processors.
While Qualcomm celebrates its victory, Arm remains determined to pursue further legal action to safeguard its intellectual property. The ongoing legal battle highlights the complexities of licensing agreements in the fast-paced semiconductor industry and the importance of protecting proprietary technology.