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[BUSINESS] · United States · 9 sources

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Qualcomm sues Arm over billions in royalties and contract breaches

Qualcomm and Arm Holdings are returning to a Delaware federal court for a five-day jury trial regarding a long-standing legal dispute. Qualcomm alleges that Arm breached its contract by withholding essential chip-testing tools.

Qualcomm is also seeking a remedy that would allow it to stop paying royalties to Arm for up to five years, a move that could involve billions of dollars. The company claims that Arm improperly leaked a 2024 threat to terminate a key license agreement, which allegedly harmed Qualcomm’s negotiations for a chip deal with Meta Platforms.

Arm, which is majority-owned by SoftBank Group, denies any breach of contract. Arm has argued that Qualcomm’s potential deals with Meta were speculative and that the leak did not cause actual harm. Additionally, Arm has countered that Qualcomm should not seek damages because Qualcomm itself leaked non-public details regarding antitrust investigations into Arm to the media.

Judge Maryellen Noreika is currently considering whether to dismiss Qualcomm’s request for the five-year royalty exemption.

Entities

Arm Holdings · Maryellen Noreika · Meta Platforms · Qualcomm · SoftBank Group

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