Qualcomm delivers key win in licensing dispute with Arm

A federal jury in a United States court delivered a key win to mobile computing titan Qualcomm in a licensing dispute with the British chipmaker, Arm. However, proceedings between the chipmakers ended in mistrial. The jury ruled that the 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 has apparently saved Qualcomm tens of millions of dollars.

Arm said it would seek a retrial.

"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.

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

Qualcomm bought Nuvia, a CPU design company, in a $1.4 billion deal that closed in 2021. The acquisition was seen as a key move in Qualcomm's expansion into the laptop market.

"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."

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.