Qualcomm wins lawsuit against Arm but will only receive two bucks
Arm accuses Qualcomm of filing the lawsuit to get out of paying billions of dollars in royalties.
Both Arm and Qualcomm published statements expressing satisfaction with the findings of a Delaware jury in a breach of licensing lawsuit. The jury found that Arm breached its Architectural License Agreement with Qualcomm and acted to disrupt its business, but it awarded a total of $2 in damages.
Legal History
The two companies have been involved in legal battles for years. In 2022, Arm sued Qualcomm after the latter acquired Nuvia, which also licenses Arm technologies. Arm argued that Qualcomm failed to obtain necessary permits to transfer Nuvia's licenses, constituting a breach of contract.
Following a five-day trial, the jury found that Arm breached agreements by withholding software patches and tools for its designs. It also found that Arm intentionally interfered with Qualcomm's business deal with Meta. The jury sided with Arm in four of Qualcomm's other claims.
Company Statements
In its statement, Arm asserted that the lawsuit was an attempt by Qualcomm to avoid paying billions of dollars under existing licensing agreements.
Arm stated that it was pleased with the jury's decision finding for Arm on four claims and awarding minimal damages on the others, confirming that it operated in good faith under its technology license agreement.
Meanwhile, Qualcomm stated it was gratified that the jury found Arm breached its long-standing Architectural License Agreement, failed to honor commitments, and intentionally acted to disrupt Qualcomm's businesses.
Future Proceedings
The legal battle is ongoing, with US District Judge Maryellen Noreika expected to resolve several more disputes between the companies. If the judge sides with Qualcomm, the company could potentially halt royalty payments to Arm for five years.
