Arm and Qualcomm have been in dispute over licenses since 2022. Arm sued Qualcomm, and that lawsuit has now begun.
The lawsuit between Arm and Qualcomm is about licensing. Qualcomm acquired Nuvia in 2021 for $1.4 billion, but Arm claims Qualcomm is using that technology without having the proper license in its pocket. Because of that acquisition, Arm allegedly lost 50 million in revenue, Reuters reports.
Proprietary chips and royalty rates
Qualcomm suggested during the lawsuit that Arm had plans to develop its own chips. This would make it a direct competitor. According to Arm CEO Rene Haas, the company would only have explored strategic opportunities, without ever even having plans to make its own chips.
Arm wants Nuvia’s designs destroyed because it claims they are the basis of low-powered AI chips Qualcomm developed using Nuvia. Microsoft expects those chips to help it regain ground against Apple.
Another allegation is about royalty rates: Qualcomm paid much lower licenses than Nuvia’s original, higher rates. Arm would earn about $300 million a year in licensing fees from Qualcomm, according to analysts.
The trial would be taken under consideration by the jury at the end of this week.