A federal jury has sided with Qualcomm on two claims against Arm, finding that the chip designer breached its agreements with Qualcomm and intentionally interfered with a Qualcomm business deal. The verdict, reached after a five-day trial, awarded Qualcomm one dollar in damages on each of those two claims, for a total of two dollars. The jury found for Arm on four of Qualcomm's other claims.
The dispute centered on Arm's handling of software patches and tools for its designs, which the jury determined it withheld in violation of its agreements with Qualcomm. Jurors also concluded that Arm deliberately disrupted a Qualcomm deal with Meta. Qualcomm had alleged that in 2024, Arm leaked information to Bloomberg News about a licensing breach while Qualcomm was close to finalizing a deal with Meta, causing a delay.
Arm responded that the lawsuit was an attempt by Qualcomm to avoid paying billions of dollars owed under the companies' existing licensing agreements. The company said it was pleased the jury ruled in its favor on four claims and awarded only one dollar each on Qualcomm's two remaining claims. Arm added that the outcome confirmed it had acted in good faith under its technology license agreement and that the two-dollar award validated its arguments.
Qualcomm said it was gratified the jury found that Arm breached its long-standing Architectural License Agreement with Qualcomm, failed to honor its commitments and intentionally acted to disrupt Qualcomm's businesses. The company said the result, combined with its earlier court victory, further exposes Arm's broader intentions to harm Qualcomm and its ecosystem.
The legal fight between the two companies has stretched over several years. In 2022, Arm sued Qualcomm after Qualcomm purchased Nuvia, which also licenses Arm technologies. Arm argued that Qualcomm did not obtain the necessary permits to transfer Nuvia's licenses, amounting to a breach of contract. Last year, Qualcomm announced the court had granted it a complete victory after dismissing Arm's remaining claims. Qualcomm later filed its own suit against Arm, citing information that emerged during discovery in that case and testimony from Arm Holdings CEO Rene Haas.
The battle is not finished. US District Judge Maryellen Noreika is still expected to resolve several more disputes between the companies. If Noreika ultimately sides with Qualcomm, the company could stop paying Arm royalties for five years, which Arm has said is worth billions of dollars. Arm has argued that the penalty, as set out in the companies' licensing contract, is not enforceable.
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