Qualcomm and Arm head to jury verdict in chip licensing feud

A jury in Wilmington, Delaware, is set to deliver a verdict in a high-stakes legal battle between chipmaker Qualcomm and technology supplier Arm Holdings. Qualcomm alleges that Arm breached licensing agreements and intentionally sabotaged its business dealings with Meta Platforms by leaking information regarding alleged license breaches.

Qualcomm claims Arm withheld essential software patches, tools, and Architecture Compliance Kits necessary for chip validation. The dispute also involves disagreements over royalty rates for Arm’s upcoming v10 architecture. Qualcomm seeks to rely on a 2013 agreement to cap royalties, while Arm argues Qualcomm is attempting to use outdated terms to access modern, high-core-count data center processors without paying current market rates.

A separate bench trial will determine whether Arm negotiated in good faith. Additionally, the judge may rule on whether Qualcomm is entitled to a five-year break from paying royalties, a decision that could save the company approximately $2.2 billion.