Federal Jury Rules in Favor of Qualcomm in Arm Lawsuit
A federal jury in Delaware has ruled that Qualcomm did not breach its agreement with Arm in the 2021 acquisition of Nuvia. The verdict marks the end of a two-year legal battle centered on allegations that Qualcomm misused chip designs licensed to Nuvia by Arm.
The jury, however, was unable to decide on whether Nuvia breached its agreement with Arm, leaving open the possibility for a retrial on this specific issue. Qualcomm’s acquisition of Nuvia was aimed at enhancing its chip lineup, including the Snapdragon X series, with potential annual savings of $1.4 billion on Arm payments.
The lawsuit, initiated by Arm in 2022, arose from Qualcomm’s continued payment of lower royalty fees post-acquisition compared to those previously paid by Nuvia. Arm contended that the designs licensed to Nuvia became invalid after the acquisition and sought the destruction of technology developed using these designs.
During the trial, the jury was influenced by Arm’s internal documents, which estimated a $50 million revenue loss due to the acquisition. Nuvia co-founder Gerard Williams testified that minimal Arm technology was utilized in Nuvia’s finished products.
Qualcomm’s general counsel, Ann Chaplin, stated that the verdict supports Qualcomm’s right to innovate and protect its products under its contract with Arm. The company plans to continue developing ARM-compliant custom CPUs, emphasizing consumer benefits and innovation.
Arm CEO Rene Haas had previously maintained the principles behind the lawsuit during a recent interview, though he did not share specific trial details. As of now, Arm has not responded to requests for comment on the verdict.
This ruling represents a significant development in the semiconductor industry, potentially impacting future licensing agreements and acquisitions in the sector. The tech community will be closely watching for any further legal developments or industry responses to this decision.
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