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.
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