Jury awards Qualcomm just $2 in license dispute with Arm
A Delaware jury found that chip designer Arm breached its license agreement with Qualcomm, but awarded only two dollars in damages. Both companies said they were pleased, and the legal fight continues.
A federal jury in Delaware has ruled that Arm, the British developer of chip architectures, breached its Architectural License Agreement with US chipmaker Qualcomm and deliberately disrupted its business. Yet total damages for Qualcomm were set at just $2. Both companies issued statements saying they were satisfied with the outcome.
What the jury found
According to Reuters, after a five-day trial the jury concluded that Arm violated the agreements by withholding software patches and tools for its designs. It also found that Arm intentionally interfered with a business deal between Qualcomm and Meta. Qualcomm had alleged that in 2024 Arm leaked to Bloomberg News that Qualcomm had breached a licensing agreement just as it was about to close the Meta deal, causing a delay. On four of Qualcomm's other claims, the jury sided with Arm.
Positions of the two companies
Arm said Qualcomm brought the case to avoid paying it billions of dollars under their licensing agreements, and argued that the verdict shows it acted in good faith. Qualcomm said it was gratified that the jury found Arm had breached the agreement and failed to honor its commitments. It added that, together with its earlier court win, the result exposes Arm's broader intentions to harm Qualcomm and its ecosystem.
Background and next steps
The companies have been in court for years. In 2022 Arm sued Qualcomm after it bought Nuvia, arguing that the necessary permission to transfer Nuvia's licenses had not been obtained. Last year Qualcomm announced a "complete victory" when the court dismissed Arm's remaining claims. According to Thurrott, Qualcomm filed its own suit because of information that emerged during that case and statements made on the stand by Arm Holdings CEO Rene Haas.
The dispute is not over. US District Judge Maryellen Noreika is still expected to resolve several more disagreements between the companies. If she sides with Qualcomm, it could stop paying Arm royalties for five years, which Arm says is worth billions of dollars. Arm argues that this penalty, set out in the licensing contract, is not enforceable.
