Qualcomm Won a landmark case against British chipmaker Arm Holdings. The case focused on whether it infringed Qualcomm License agreement after the acquisition of the Nuvia startup in 2021. Nuvia’s chip designs were allegedly based on Arm’s technology, and Arm argued that Qualcomm should pay a higher royalty fee for its use post-acquisition.
The jury is out in the end Qualcomm The most critical issue is determining whether the company’s CPU chips are properly licensed within the scope of its agreement with Arm. This is a big win for Qualcomm because it paves the way for the company to continue selling its chips, including those featuring Nuvia technology.
However, the decision was not entirely final. The jury was unable to reach a unanimous verdict on whether Nuvia violated the licensing terms it had with Arm before it was acquired by Qualcomm. This leaves some uncertainty in the case and it is possible that this issue will be revisited in the future.
Judge Maryellen Noreika, who presided over the case, encouraged both sides to mediate the dispute to avoid a new trial. “I don’t think either side has or will have a clear victory if this case is retried,” Noreika said.
Despite the mixed decision, the result was a relief for Qualcomm. Following the news, the company’s share price rose 1.8% in after-hours trading. Kol shares fell 1.8% in extended trading.
The legal battle between Qualcomm and Arm is being watched closely in the tech industry for its impact on the broader chip market. Arm licenses its chip designs to many companies, including many of Qualcomm’s competitors. The outcome of this case could set a precedent for future licensing agreements between Arm and its partners.
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