Jury finds Arm breached Qualcomm licence but awards only $2
A Delaware jury found that Arm breached its licensing agreement with Qualcomm and intentionally interfered with its business, but awarded Qualcomm only $2 in damages. The verdict matters because the companies are still disputing whether Qualcomm must pay Arm royalties worth billions of dollars.
The jury said Arm withheld software patches and design tools and interfered with a Qualcomm deal with Meta, which Qualcomm said was delayed after a licensing dispute was reported in 2024. It sided with Arm on four other claims. A US judge is expected to decide further disputes; if she rules for Qualcomm, it could stop paying Arm royalties for five years.
- Arm was found to have breached its agreement with Qualcomm.
- Qualcomm received just $2 in damages.
- A judge still has to decide the royalties dispute.
New here? Start with this
Arm licenses chip designs and related tools to companies that make processors. Qualcomm uses Arm technology in chips for phones and other devices, and has also acquired Nuvia, a start-up that held its own Arm licence. The companies disagree over how their licences apply to Qualcomm’s use of Nuvia’s designs.
The dispute affects both companies’ business with customers and the royalties Qualcomm may owe Arm. Qualcomm says Arm withheld software patches and design tools and disrupted a potential deal with Meta; Arm prevailed on several other claims. The wider licensing dispute could determine whether Qualcomm continues paying Arm royalties worth billions of dollars.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Qualcomm can argue that the jury’s findings confirm Arm breached its licence and deliberately disrupted Qualcomm’s business by withholding tools and interfering with a Meta deal. Even a small damages award may matter because the findings could support Qualcomm’s effort to avoid billions in royalties if the judge rules in its favour.
The case against
Arm can argue that the $2 award reflects the limited financial harm the jury found Qualcomm had proved, and that the verdict also favoured Arm on four claims. The remaining royalty dispute is a separate question for the judge, so the jury’s findings do not by themselves settle whether Qualcomm can stop paying royalties.
Read the full article at the source →
Originally published by Engadget as “Qualcomm wins lawsuit against Arm but will only receive two bucks”.