A Verdict that Resolves Key Issues
The lawsuit centered on Qualcomm’s use of Oryon cores in its Snapdragon X processors for PCs. These cores, developed from technologies by Nuvia (a company acquired by Qualcomm in 2021), utilize licenses related to Arm. Qualcomm argued that its existing agreement with Arm included these technologies, a stance that the jury upheld. As a result, Qualcomm can continue to market its Snapdragon processors without needing to renegotiate its licenses.
However, there remains a pivotal unresolved issue: Did Nuvia violate the terms of its own licensing agreement before being purchased by Qualcomm? On this matter, the jury was unable to reach a decision, leaving the door open for potential further litigation.
Implications for Both Companies
For Qualcomm, the verdict comes as a relief. It protects their strategy to develop custom processors for the PC market and expand their business beyond smartphones. Qualcomm has even set a target of achieving $4 billion in PC-related revenue by 2029, relying on its new AI-optimized chips.
For Arm, the outcome disrupts its strategy somewhat. By attempting to enforce higher royalties and exert more control over its technologies, it loses a significant bargaining chip against Qualcomm, one of its largest clients. This setback could also cause concern for other companies using Arm’s licenses, such as Nvidia or AMD, who are closely monitoring the outcomes of any future appeals.
An Uncertain Future Ahead
While Qualcomm currently appears strengthened, the legal battle is far from over. Arm has already expressed intentions to seek a new trial, specifically to address the licensing violation issue with Nuvia mentioned earlier. In the meantime, Qualcomm can proceed with its plans but remains under the threat of possible legal reversals.
For now, the verdict is clear: Qualcomm retains its right to use Arm’s technologies under its existing agreements. This outcome could also influence how future technology licenses are negotiated within the industry.