A jury in the Arm-Qualcomm case ruled in favor of Qualcomm, finding that the company did not breach its agreement with Nuvia. This decision leaves Arm with less leverage in negotiations with Qualcomm and potentially facing lower royalties.
During its second day of deliberation, the jury reached a decision in the Arm - Qualcomm case. They determined that Qualcomm did not breach the Nuvia ALA (question 2) and that custom Qualcomm CPU s developed after the agreement using Nuvia technology as a baseline are covered under the Qualcomm ALA agreement (question 3 – the counterclaim). The jury could not reach a decision on whether Nuvia breached the Nuvia ALA agreement (question 1).
This is of no surprise given the conflicting language in the license agreement that created the dispute in the first place. It’s no wonder that a jury could not interpret it if the parties that signed it cannot agree on the meaning of its terms and conditions.The outcome is positive for Qualcomm. The jury decided that Qualcomm did not breach an agreement that it was not a party to and, perhaps more importantly, it can move forward with its efforts under its current license agreement. However, it leaves a cloud hanging over Nuvia. As for Arm, it loses its leverage to push for a new ALA with Qualcomm and faces lower royalties from its largest customer as Qualcomm rolls out its new line of custom CPU cores throughout its product lines. Note that it may take a few years before the custom CPU cores replace off-the-shelf Arm CPU cores across Qualcomm’s entire product line, and Qualcomm will still be using other Arm technology covered in its TLA agreement. Additionally, Arm will receive additional TLA and ALA royalties from Qualcomm as it pushes into new market segments. Arm will just receive a lower royalty rate on the custom CPU cores than it would have if Qualcomm was using off-the-shelve Arm cores or if were forced to operate under the Nuvia ALA, but this was inevitable as Qualcomm sought to develop more competitive CPUs one way or another.This may be a wake-up call for the rest of the Arm ecosystem as it considers taking new Arm licenses and/or acquisition
Arm Qualcomm Nuvia ALA CPU License Agreement Royalty Rate Patent Law
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Arm Squares Off Against Qualcomm: Day 4 Closings & InsightsQualcomm’s ALA license extends through 2028, and the company has the option to extend it another 5 years for an additional fee of $1M/year.
Read more »
Arm lawsuit ends in mistrial with Qualcomm securing key winArm lawsuit ends in mistrial with Qualcomm securing key win
Read more »
Arm Squares Off Against Qualcomm In A Case With Broad ImplicationsHowever, the outcome of this case could have a wide-ranging impact on Intellectual Property (IP) licensing and mergers and acquisitions in the broader tech industry.
Read more »
Qualcomm wins a legal battle over Arm chip licensingA federal jury determined that Qualcomm didn’t breach its agreement with Arm following the chipmaker’s 2021 acquisition of Nuvia.
Read more »
Arm Squares Off Against Qualcomm: Day 1After eight months, both companies let the negotiations lapse and discontinued communication until Arm notified Qualcomm of the intent to terminate the Nuvia license
Read more »
Arm-Qualcomm trial set to begin over chip contract disputeArm-Qualcomm trial set to begin over chip contract dispute
Read more »