“The jury’s verdict confirms that Arm operated in good faith under its technology license agreement and its award of only two dollars confirms the merit of Arm’s arguments in the case,” Arm said in a statement.
A federal jury in Delaware found on 13 October that Arm breached its licensing agreement with Qualcomm. It also found that Arm intentionally interfered with Qualcomm’s business with Meta, Reuters reported. It awarded Qualcomm nominal damages of $1 on each of those two claims, $2 in total.
The jury found that Arm broke its obligation to provide software patches and tools for its designs. It sided with Arm on Qualcomm’s other breach allegations. On Meta, the jury found Arm’s interference both intentional and negligent.
Qualcomm claimed it was close to a deal with Meta in 2024. Arm then allegedly leaked to Bloomberg News that Qualcomm had breached a licensing agreement. Qualcomm said the leak delayed the Meta deal.
“We are gratified that the jury found Arm breached its long-standing Architectural License Agreement (ALA) with Qualcomm, failed to honor its commitments, and intentionally acted to disrupt Qualcomm’s businesses,” Qualcomm said in a statement.
Why $2 may not be the end
Arm said Qualcomm brought the case to deprive it of billions of dollars under their licence agreements. US District Judge Maryellen Noreika must still settle several disputes in the next phase, Reuters reported.
After the breach finding, she could rule that Qualcomm may stop paying Arm royalties for five years. That penalty sits in a clause of the licensing agreement. Those royalties could be worth billions of dollars. Arm argues that courts cannot enforce the five-year penalty.
Qualcomm could also use the interference finding in another dispute. It says Arm refused to negotiate in good faith on the next version of its technology, which the judge must also decide. The losing side in those decisions would likely appeal, according to Reuters.
Partners turned rivals
Arm and Qualcomm have now fought two trials in two years, the latest lasting five days. It showed how their relationship soured after SoftBank took control of Arm in 2016, Reuters reported. Arm has since moved from licensing chip technology to selling its own chips, such as its in-house AGI CPU.
Qualcomm said it remains focused on its own products, including its Oryon CPUs. It unveiled its latest Snapdragon chips in September, splitting its flagship phone chip into two versions.
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