Qualcomm and Arm Holdings are back in court in Delaware in a major contract dispute that could determine whether Qualcomm continues paying billions of dollars in royalties to the chip-design company.
The five-day jury trial, which began on Monday, October 5, centres on Qualcomm’s claims that Arm failed to provide chip-testing tools required under their agreement and improperly publicised a 2024 threat to terminate a key licence. Qualcomm says the disclosure damaged negotiations over a potential chip deal with Meta Platforms.
Qualcomm is seeking the right to stop paying royalties to Arm for up to five years, potentially putting billions of dollars in payments at stake. Judge Maryellen Noreika is also considering whether that provision of the contract should remain available, which could significantly affect the damages Qualcomm can pursue.
Arm denies breaching its contractual obligations and argues that Qualcomm’s claims over the Meta discussions are speculative. It has also accused Qualcomm of leaking confidential information concerning antitrust investigations involving Arm.
The dispute is the latest chapter in a long-running legal battle between the companies. Qualcomm is one of Arm’s largest customers, while Arm has increasingly moved into areas that put it in competition with companies that use its chip architecture, including Qualcomm and Nvidia.
Leave a comment