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Qualcomm Wins a Significant Battle Against Arm in the Chips Trial

CIO Insider Team | Saturday, 21 December, 2024
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Qualcomm's central processors are properly licensed under an agreement with Arm Holdings, a jury found in a trial in U.S. federal court that removed some, but not all, uncertainty around the mobile chipmaker's expansion into the laptop market.

After a week of courtroom arguments and deliberations, the trial between the two chip titans ended in a mistrial when the jury could not decide on one of the three questions. Arm promised to request a fresh trial, while Qualcomm stated that the outcome validated its right to innovate.

In prolonged trade following the news, Qualcomm's shares increased 1.8 percent while Arm's shares decreased 1.8 percent.

Because of the verdict, the matter may be tried again in the future, which Arm promised to do in a statement after the verdict. The matter was heard in a U.S. federal court in Delaware by Judge Maryellen Noreika, who urged Arm and Qualcomm to resolve their disagreement through mediation.

"I don't think either side had a clear victory or would have had a clear victory if this case is tried again,” says Noreika.

The jury determined that Qualcomm, which paid $1.4 billion to acquire Nuvia in 2021, had not violated that agreement

The eight-member jury was unable to reach a unanimous decision on whether startup Nuvia violated the terms of its license with Arm after more than nine hours of discussion over two days.

However, the jury determined that Qualcomm, which paid $1.4 billion to acquire Nuvia in 2021, had not violated that agreement.

Additionally, the jury determined that Qualcomm's chips—which were developed using Nuvia technology and were essential to the company's entry into the personal computer market—are appropriately licensed under its contract with Arm, allowing Qualcomm to keep selling them.



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