Qualcomm wins suit against Arm but jury awards only $2

The jury found that Arm breached its agreements with Qualcomm by withholding software patches and tools for its designs, Reuters reported. It also found that Arm intentionally interfered with Qualcomm's business deal with Meta. Qualcomm had alleged that in 2024 Arm leaked to Bloomberg News that Qualcomm had breached a licensing agreement when Qualcomm was on the verge of closing a deal with Meta, leading to a delay, according to the report. The jury sided with Arm on four other Qualcomm claims.

Arm said in a statement that the lawsuit was an attempt by Qualcomm to avoid paying it "billions of dollars" under existing licensing agreements. "We are pleased with the jury's decision today finding for Arm on four claims and awarding only one dollar in damages on each of Qualcomm's other two claims," Arm said. "Despite Qualcomm's pursuit of this case in an attempt to deprive Arm of billions of dollars under our license agreements, the jury's verdict confirms that Arm operated in good faith under its technology license agreement and its award of only two dollars confirms the merit of Arm's arguments in the case."

Qualcomm said it was "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." It added: "Together with Qualcomm's prior court victory, this outcome further exposes Arm's broader intentions to harm Qualcomm and its ecosystem."

The companies have been in legal battles for years. In 2022, Arm sued Qualcomm after Qualcomm purchased Nuvia, which also licenses its technologies. Arm argued at the time that Qualcomm did not obtain the necessary permits to transfer Nuvia's licenses, constituting a breach of contract. Last year, Qualcomm announced that the court had granted it a "complete victory" after it dismissed Arm's remaining claims.

According to Thurrott, Qualcomm sued Arm after information emerged during discovery in that case and after comments by Arm Holdings CEO Rene Haas on the stand. Engadget reported that both companies said they were pleased with the Delaware jury's findings.

The court battle is not over. US District Judge Maryellen Noreika is still expected to resolve several more disputes between the companies. If Noreika ultimately sides with Qualcomm, Qualcomm could stop paying Arm royalties for five years, which Arm has said is worth billions of dollars. Arm has argued that the penalty, as indicated in the companies' licensing contract, is not enforceable.

Editor's Summary

A Delaware jury found Arm breached its architectural license agreement with Qualcomm and interfered with a Meta deal, but awarded Qualcomm only $2. Arm and Qualcomm each welcomed parts of the verdict. Additional disputes remain before Judge Maryellen Noreika, including a possible five-year pause in Qualcomm's royalty payments.