Qualcomm beats Arm in court — and wins just $2

A Delaware federal jury has found that Arm breached its licensing agreement with Qualcomm and intentionally interfered with the chipmaker's business relationship with Meta Platforms. However, the jury awarded Qualcomm just $2 in nominal damages, leaving both companies claiming a measure of victory.

The verdict followed a five-day trial and marks the latest chapter in a dispute that has strained relations between two of the semiconductor industry's major players. Arm's shares fell about 1 % following the decision.

Qualcomm welcomed the verdict, saying it confirmed that Arm had breached its Architectural License Agreement (ALA), failed to honor its commitments and intentionally acted to disrupt Qualcomm's business. The company called the outcome a victory for innovation and competition.

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.

Qualcomm added that the verdict, together with its earlier court victory, “further exposes Arm’s broader intentions to harm Qualcomm and its ecosystem.” The company said it remains focused on developing its Oryon CPUs and other semiconductor products.

Arm, however, also claimed a favorable outcome. The company said the jury ruled in its favor on four claims, while awarding Qualcomm just $1 in damages for each of the two claims it lost. Arm argued that the nominal award supported its position that it had acted in good faith under its technology licensing agreement.

Despite Qualcomm’s pursuit of this case in an attempt to deprive Arm of billions of dollars under our license agreements, 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.

The company added that it remains focused on delivering technology for its customers, partners and shareholders.

The dispute centers on Qualcomm's licensing agreement with Arm, which allows Qualcomm to use Arm's processor architecture. The companies have clashed over licensing terms and allegations of interference with Qualcomm's business. Their relationship has deteriorated since SoftBank acquired control of Arm in 2016 and Arm expanded into developing its own chips. Qualcomm's license runs until 2033.

The verdict does not settle every issue between the companies. Qualcomm is pursuing further arguments over licensing terms and a contractual provision that it says could allow it to stop paying royalties for five years following a breach. Those issues could have greater financial implications than the jury's $2 award.