ARM Suffers Legal Defeat Against Qualcomm

In a significant legal setback, ARM has lost a pivotal case against Qualcomm. A U.S. District Court in Delaware ruled in favor of Qualcomm and its acquired startup Nuvia, which comprises former engineers from Apple, AMD, and Google, allowing them to transfer their CPU core designs to Qualcomm.

This ruling marks the conclusion of a dispute that had previously resulted in a deadlock among jurors in late 2024. Presently, the designs developed by Nuvia are being utilized in various notebook and smartphone processors, including the Snapdragon X2 Elite and Snapdragon 8 Elite Gen 5.

The crux of the disagreement revolved around a licensing agreement that stipulated Nuvia could only sell its ARM license and technology with ARM's consent. ARM contended that Qualcomm's acquisition of Nuvia occurred without such approval, thereby constituting a breach of contract.

In response, Qualcomm and Nuvia argued that Qualcomm already possessed its own ARM license, which rendered Nuvia's previous license invalid. They further asserted that the CPU core designs created by Nuvia did not incorporate ARM technology, negating the need for ARM's consent. In December, it was noted that an instruction set does not dictate CPU design and has minimal impact on development.

According to Qualcomm, the court sided with their argument. ARM has long viewed the acquisition of Nuvia as a threat since it jeopardizes revenue streams tied to licensing fees that ARM would have otherwise collected. Initially, Nuvia focused on server processors and committed to paying ARM relatively high licensing fees per CPU sold. In return, ARM was expected to provide substantial development support. However, with Qualcomm's acquisition, the previous financial arrangements are now void, and Qualcomm's licensing terms apply.

In a statement to U.S. media outlets, ARM announced plans to appeal the court's ruling.

Currently, a counterclaim is underway, with Qualcomm accusing ARM of several issues, including breach of contract and improper interference with customer relationships. Qualcomm alleges that ARM has engaged in practices aimed at stifling innovation while favoring its own products over those of its long-standing partners. During a hearing in December, Qualcomm executives testified that ARM attempted to pit Qualcomm's customers against the company itself while withholding information within the licensing framework.

The next court hearing is scheduled for March 2026, where these allegations will be further examined.