A Delaware jury found Arm breached its licensing agreement with Qualcomm, but awarded only $2 in total damages.
Key facts
- •The jury awarded Qualcomm $1 in damages for each of the two claims it won against Arm.
- •Arm argued that Qualcomm's lawsuit was an attempt to avoid paying billions of dollars in licensing fees.
- •The jury found that Arm withheld software patches and tools for its designs.
- •Qualcomm alleged that Arm leaked information to Bloomberg News regarding a licensing breach to disrupt a deal with Meta.
- •Judge Maryellen Noreika will preside over remaining disputes between the two companies.
A Delaware jury has ruled that Arm breached its Architectural License Agreement with Qualcomm and interfered with its business dealings. Despite the verdict, the jury awarded Qualcomm only $2 in damages. Both companies expressed satisfaction with the outcome, as the legal battle continues regarding future royalty payments.
Background of the legal dispute
The conflict stems from Qualcomm's 2022 acquisition of Nuvia, a company that also licensed Arm technology. Arm initially sued Qualcomm, alleging that the company failed to obtain necessary permits to transfer Nuvia's licenses. Qualcomm later countersued Arm, alleging that the company withheld software patches and tools and intentionally interfered with a business deal between Qualcomm and Meta.
Ongoing litigation and future stakes
While the jury sided with Arm on four of Qualcomm's claims, it found Arm liable for breaching agreements and interfering with Qualcomm's business. US District Judge Maryellen Noreika is expected to resolve remaining disputes. Qualcomm is seeking to stop paying royalties to Arm for five years, a penalty Arm claims is unenforceable and would cost it billions of dollars.
Timeline
- 2022Arm sued Qualcomm following its acquisition of Nuvia.
- 2023Qualcomm announced a victory after the court dismissed Arm's remaining claims.
- 2024Qualcomm alleged that Arm leaked information to the media to disrupt a deal with Meta.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Engadget.
