Arm Holdings sued Qualcomm for allegedly violating a licensing agreement. However, a jury concluded today that it couldn’t reach a conclusion on one in all the costs and ruled in Qualcomm's favor on one other charge.
Arm sued Qualcomm after Qualcomm acquired Arm licensee Nuvia for $1.4 billion. The jury couldn't agree on whether Nuvia violated its license agreement, but in addition said Qualcomm didn’t violate Nuvia's license with Arm.
“We are pleased with today’s decision,” Qualcomm said in a press release. “The jury affirmed Qualcomm's right to innovate and confirmed that each one Qualcomm products at issue on this case are protected by Qualcomm's contract with ARM. With our incredible Oryon ARM-compatible custom CPUs, we are going to proceed to develop world-class, performance-leading products that profit consumers worldwide.”
The jury found that Qualcomm properly licensed its core processor chips. Arm shares fell in after-hours trading, while Qualcomm shares rose barely. The case, which is being heard in U.S. federal court in Delaware, may very well be retried.
The jury also concluded that Qualcomm's chips, made using Nuvia's proprietary technology, were properly licensed under Nuvia's agreement with Arm. This means Qualcomm can proceed to sell them. These chips help Qualcomm enter the PC market.
In a press release, Arm said: “We are disenchanted that the jury was unable to succeed in a consensus on the claims.” We intend to hunt a retrial since the jury is deadlocked. From the start, our top priority has been to guard Arm's mental property and the unparalleled ecosystem we have now built with our valued partners over greater than 30 years. As all the time, we’re committed to driving innovation in our rapidly evolving marketplace, serving our partners while advancing the long run of computing.”
