Business · Companies · 6 hrs ago
Jury finds Arm breached Qualcomm deal but awards only $2
A Delaware jury found that Arm breached its licensing deal with Qualcomm and interfered with Qualcomm's business relationship with Meta.
The verdict followed a five-day trial in a dispute between two major chip companies.
Their conflict grew out of licensing agreements that let Qualcomm use Arm's processor designs, and earlier legal battles included Arm's claims over Qualcomm's purchase of Nuvia.
The jury awarded Qualcomm just $2 in damages, while finding in Arm's favor on four other claims.
The tiny award lets both companies claim a measure of victory: Qualcomm points to the findings against Arm, while Arm says the award supports its position that it acted in good faith.
The case matters because the companies' licensing terms could affect Qualcomm's future royalty payments to Arm.
A judge still has to resolve further disputes, including whether Qualcomm could stop paying royalties for five years if the judge sides with it.
A Delaware jury found that Arm breached its licensing agreement with Qualcomm and intentionally interfered with Qualcomm’s business relationship with Meta.
The jury awarded Qualcomm just $2 in damages, with $1 for each of two claims.
The jury ruled in Arm’s favor on four other claims, and both companies described the outcome as favorable to them.
The verdict followed a five-day trial and does not resolve all disputes between the companies.
A judge is still expected to address further disputes, including whether Qualcomm can stop paying Arm royalties for five years.
- Who
- Arm and Qualcomm, two semiconductor companies.
- What
- A jury found Arm breached its agreement with Qualcomm and interfered with its business relationship with Meta, but awarded Qualcomm $2.
- When
- The verdict followed a five-day trial; the exact date is not stated.
- Where
- Delaware, United States.
- Why
- The companies are disputing their licensing agreement and allegations that Arm interfered with Qualcomm’s business.
Qualcomm
Arm
Verdict
Qualcomm
Qualcomm said the jury confirmed Arm breached its agreement, failed to honor commitments and intentionally disrupted its business.
Arm
Arm said the jury’s decisions on four claims and the $2 award supported its position.
Conduct
Qualcomm
Qualcomm said Arm acted to harm its business and ecosystem.
Arm
Arm said it acted in good faith under its technology license agreement.
Licensing dispute
Qualcomm
Qualcomm is pursuing arguments that could allow it to stop paying royalties for five years following a breach.
Arm
Arm says the lawsuit sought to deprive it of billions of dollars under existing license agreements and argues the proposed penalty is unenforceable.
Arm sued Qualcomm after Qualcomm purchased Nuvia, arguing that Qualcomm had not obtained the permits needed to transfer Nuvia’s licenses.
Qualcomm alleged that Arm leaked to Bloomberg News that Qualcomm had breached a licensing agreement as it was nearing a deal with Meta, delaying the deal.
A Delaware jury found that Arm breached its agreement with Qualcomm and interfered with its business relationship with Meta, awarding $2.
US District Judge Maryellen Noreika was still expected to resolve further disputes between the companies.
- Damages
- $2 total, or $1 for each of two claims
- Trial
- Five days
- Claims decided for Arm
- Four
- Meta relationship
- The jury found Arm intentionally interfered with Qualcomm’s business relationship with Meta
- Qualcomm license term
- Through 2033
2 sources
What people are saying
We are gratified that the jury found Arm breached its long-standing Architectural License Agreement (ALA) with Qualcomm, failed to honor its commitments, and intentionally acted to disrupt Qualcomm's businesses.
We are pleased with the jury' decision today finding for Arm on four claims and awarding only one dollar in damages on each of Qualcomm's other two claims