Qualcomm Perseveres Against ARM In The Latest Trial, With An Eight-Person Jury Unable To Determine Whether Nuvia Breached Its Licensing Agreement With the British Chip Designer

The Nuvia acquisition for $1.4 billion might have given Qualcomm the opportunity to enter the PC and smartphone market with better performing chipsets so it could compete with Apple, but this decision also put it in the crosshairs of ARM, who claims that the San Diego breached the licensing agreement. Unfortunately, an eight-person jury in Delaware does not believe so because the latest report states that the individuals could not reach a unanimous decision regarding the licensing dispute.

Judge believes that neither Qualcomm nor ARM had a ‘clear victory’ and advises both companies to mediate their dispute

Even though Qualcomm secured a win against the British chip designer, Reuters reports that after nine hours of deliberations that lasted for over two days, the jury could not determine if Nuvia breached its agreement with ARM, which only means that the case can go to trial again. Court Judge Maryellen Noreika stated that she does not believe any side had a clear victory or would have a clear victory if the case went to trial again. She also encouraged both Qualcomm and ARM to come to an agreement, as a future trial likely means that hours and resources will be wasted unnecessarily.

The jury also found that the Snapdragon X Elite and Snapdragon X Plus used in various portable computers as part of Qualcomm’s plan to push into this space are properly licensed under its own agreement with ARM, making it possible for the chipset manufacturer to sell them to its partners without any fear of legal repercussions. An ARM spokesperson mentioned that the company was disappointed that the jury could not reach a consensus and that the firm’s goal from the start was to protect its intellectual property.

During the trial, Qualcomm CEO Christiano Amon said that he saw an opportunity to save the company as much as $1.4 billion in licensing payments to ARM, which is why he proceeded to acquire Nuvia, a decision that was met with a ton of disapproval from the board. Laywers from both sides also grilled Gerard Williams, an ex-Apple engineer who founded Nuvia in 2019 and one of the lead designers of Oryon, who stated that Qualcomm’s in-house cores use less than 1 percent of ARM’s technology.

For the time being, Qualcomm will continue to sell Snapdragon X Elite and Snapdragon X Plus chipsets to its partners, but with the saga far from over, we could see both parties end up in a courtroom in the near future.

News Source: Reuters