Qualcomm prevails in Arm lawsuit as jury deadlocks

The legal battle between chip designer Arm Holdings and semiconductor giant Qualcomm over licensing rights has reached a pivotal moment with a mixed outcome in federal court.

Key developments: The jury delivered a split decision in Arm’s lawsuit against Qualcomm regarding licensing agreements following Qualcomm’s $1.4 billion acquisition of Nuvia.

• The jury was unable to reach a consensus on whether Nuvia breached its license agreement with Arm
• A clear verdict emerged stating Qualcomm did not breach Nuvia’s license with Arm
• The case, heard in U.S. federal court in Delaware, may face a retrial due to the partial deadlock

Market implications: The ruling has immediate effects on both companies’ market positions and stock performance.

• Qualcomm can continue selling chips created using Nuvia’s technology, supporting its expansion into the personal computer market
• Arm shares declined in after-hours trading following the verdict
• Qualcomm shares showed a slight increase after the announcement

Company responses: Both companies have issued statements reflecting their contrasting views on the outcome.

• Qualcomm celebrated the decision as a vindication of their right to innovate and develop ARM-compliant custom CPUs
• Arm expressed disappointment over the jury’s inability to reach consensus and announced intentions to seek a retrial
• Arm emphasized its commitment to protecting intellectual property and maintaining its ecosystem built over three decades

Looking ahead: The partial mistrial and potential retrial create ongoing uncertainty in the semiconductor industry’s competitive landscape, while Qualcomm’s immediate ability to continue its chip development and sales represents a significant tactical victory for the company’s strategic expansion plans.