A federal jury in the United States has ruled in favor of mobile computing titan Qualcomm, ending a licensing dispute with chipmaker Arm. The decision came after proceedings between the two companies ended in mistrial.
The jury cleared Qualcomm of any wrongdoing in acquiring central processor designs from Nuvia, a technology company it acquired for $1.4 billion in 2021. This decision saved Qualcomm tens of millions of dollars in royalties.
Arm had demanded higher licensing fees under a bilateral agreement, but the jury sided with Qualcomm’s existing arrangement with Nuvia. The British chipmaker has announced plans to seek a retrial.
The outcome is seen as a victory for Qualcomm, which was accused of breaching its licensing agreement with Arm. “We are pleased with today’s decision,” said a Qualcomm statement, adding that it vindicated the company’s right to innovate and protected its contract with Arm.
Arm shares dropped 1% in after-market trades following the news, while Qualcomm shares rose by 2%.
Source: https://finance.yahoo.com/news/qualcomm-scores-key-win-licensing-021428396.html