Qualcomm scores key win in licensing dispute with Arm

A federal jury in the United States on Friday delivered a key win to mobile commputing titan Qualcomm in a licensing dispute with Arm, although proceedings between the chipmakers ended in mistrial.

The jury ruled that Arm central processor designs that Qualcomm had acquired when it bought technology company Nuvia had been properly licensed.

Arm had contested that claim, demanding Qualcomm pay a higher licensing fee under a bilateral agreement between the two chipmakers, rather than the lower fee in Arm’s agreement with Nuvia.

The difference in royalties purportedly saved Qualcomm tens of millions of dollars. British chipmaker Arm said it would seek a retrial.

Qualcomm bought Nuvia, a CPU design company, in a $1.4 billion deal that closed in 2021, according to the California-based chip maker. The acquisition was seen as a key move in Qualcomm’s expansion into the laptop market.

The federal jury did not, however, reach an agreement on whether Qualcomm breached a licensing agreement with Arm.

“We are pleased with today’s decision,” Qualcomm said in a statement posted online.

“The jury has vindicated Qualcomm’s right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with Arm.”

In response to an AFP inquiry, an Arm spokesperson said they would seek a retrial “due to the jury’s deadlock.”

“From the outset, our top priority has been to protect Arm’s (intellectual property) and the unparalleled ecosystem we have built with our valued partners over more than 30 years,” they said.

Qualcomm shares were up about 2 percent in after-market trades to $155.99 while Arm shares shed more than one percent to $130.50.

© 2024 AFP