Qualcomm’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.
With the end of testimony on Day 3 of the trial, the only items remaining were the closing arguments, instructions for the jury, and jury deliberations. A verdict was not reached after several hours, so jury deliberations will continue today. In addition, testimony for the countersuit about Arm’s use of Nuvia design suggestions was not completed and will continue after the holiday break, which would be on or after court resumes on January 3, 2025.
Immediately after closing arguments, the judge read the jury instructions, and the jury was sequestered under guard. As there is little to do while waiting for a verdict, this is a good time to highlight some of the insights that have arisen from the trial.The most interesting thing about a civil trial between two companies is the confidential information that is made public, and this case is no different.
Arm appeared to act aggressively in its dealings with Qualcomm following the acquisition of Nuvia. This included pushing for the assumption of the Nuvia ALA, renegotiation of the Qualcomm ALA, and a campaign to 37 current and potential Qualcomm customers with inaccurate statements and information. This “pressure” on Qualcomm was promoted even by the Chairman of the Board, Masayoshi Son.
Arm did not indicate any harm to its business until just before the trial, and at that point, the judge would not allow it to be included in the trial. According to Arm, there was no harm until units began shipping, which refers to the Hanoa-based Snapdragon SoCs for PCs and Pakala-based Snapdragon mobile SoCs for next-generation Android smartphones.
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