Delaware Jury Awards Qualcomm $2 in Damages, Finds Arm Breached License Agreement

Jury Finds Against Arm in Qualcomm Case

A federal jury in Wilmington, Delaware, found on Tuesday that chip technology supplier Arm Holdings breached its licensing agreement with Qualcomm and intentionally interfered with the chipmaker's business relationship with Meta Platforms, according to court records.

The jury awarded Qualcomm nominal damages of just $2 from Arm. Following the verdict, shares of Arm were down 1%, while shares of Qualcomm rose 1%.

Second Trial in Two Years Highlights Strained Relationship

The verdict followed a five-day trial last week, the second in two years between the two companies. The litigation highlighted the deterioration of their business relationship after SoftBank Group acquired control of Arm in 2016.

Since that acquisition, Arm shifted from licensing the technology needed to make chips to selling chips of its own. That strategic change put Arm in more direct competition with companies that had long relied on its licensing model, including Qualcomm.

The case drew attention across the semiconductor industry because of its implications for Arm's licensing business and the broader ecosystem of chip designers that depend on its technology. Reporting by Anhata Rooprai in Bengaluru; editing by Jonathan Ananda, Franklin Paul and David Gaffen.

Sources: Techmeme