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Arm Holdings sued Qualcomm for alleged breach of license agreement. However, the jury found today that it was unable to reach a conclusion on one of the charges and found in Qualcomm’s favor on another.
Arm sued Qualcomm after Qualcomm acquired Arm licensee Nuvia for $1.4 billion. The jury could not agree on whether Nuvia breached its license agreement, but also said that Qualcomm did not breach Nuvia’s license with Arm.
“We are pleased with today’s decision,” Qualcomm said in a statement. “The jury upheld Qualcomm’s right to innovate and confirmed that all Qualcomm products at issue in this case are protected by Qualcomm’s contract with ARM. We will continue to develop world-class cutting-edge products that will benefit consumers around the world with our amazing custom Oryon ARM-compatible CPUs.
The panel said Qualcomm properly licensed its CPU chips. Shares of the publicly traded company fell in after-hours trading, while shares of Qualcomm rose slightly. The case, filed in US federal court in Delaware, could be reheard.
The jury also found that Qualcomm’s chips, which were built using Nuvia’s proprietary technology, are properly licensed under Nuvia’s agreement with Arm. That means Qualcomm can continue to sell them. These chips help Qualcomm enter the PC market.
In a statement, Arm said: “We are disappointed that the jury was unable to reach a consensus on the claims. We intend to seek a new trial due to the jury deadlock. From the beginning, our top priority has been to protect Arm’s IP and the unique ecosystem we’ve built with our valued partners over 30 years. As always, we are committed to driving innovation in our rapidly evolving market and serving our partners while advancing the future of computing.”