Qualcomm Triumphs Over ARM in Latest Trial: Jury Deadlocked on Nuvia’s Licensing Agreement Breach

The recent $1.4 billion acquisition of Nuvia by Qualcomm has positioned the company to enhance its influence in the PC and smartphone sectors with advanced chipsets, aimed primarily at competing with industry giant Apple. However, this strategic move has also put Qualcomm in a contentious legal battle with ARM, which alleges that Qualcomm has violated a licensing agreement. A jury learning the details of this dispute in Delaware recently encountered a stalemate, failing to reach a unanimous verdict.

Judge Calls for Mediation as Neither Party Achieves Clear Victory

Despite Qualcomm’s earlier optimism, the jury’s inability to determine whether Nuvia breached its contractual obligations leaves the door open for further legal proceedings. After extensive deliberation lasting more than two days, it became clear that the jury could not agree on the matter, which prompted Judge Maryellen Noreika to remark that neither Qualcomm nor ARM emerged with a definitive win. She advised both parties to consider mediation to resolve their differences and avoid the potential waste of further time and resources in a retrial.

A significant aspect of this case involved Qualcomm’s `Snapdragon X Elite` and `Snapdragon X Plus`, chipsets designed for portable computers, which Qualcomm argues are appropriately licensed under its existing agreements with ARM. The jury confirmed that these chipsets can be marketed and sold to Qualcomm’s partners without exposing the company to legal risks. An ARM representative expressed disappointment over the jury’s deadlock, reiterating the company’s commitment to safeguarding its intellectual property.

During the trial, Qualcomm’s CEO, Christiano Amon, expressed that acquiring Nuvia could potentially save the company as much as $1.4 billion in ARM licensing fees, a gambit that faced significant pushback from the Qualcomm board. Notably, attorneys from both sides questioned Gerard Williams, a former Apple engineer and Nuvia’s founder, regarding the technology used in Qualcomm’s processors. Williams testified that Qualcomm’s proprietary cores utilize less than 1% of ARM’s technology.

As it stands, Qualcomm will continue distributing the Snapdragon X Elite and Snapdragon X Plus chipsets while the legal saga remains unresolved. The likelihood of renewed courtroom battles looms, signaling that this dispute is far from concluded.

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