Jury Finds Arm Breached Qualcomm License Deal, Awards $2

A U.S. jury has found that chip technology supplier Arm Holdings breached its license agreement with Qualcomm and intentionally interfered with Qualcomm's business dealings with Meta Platforms. The jury awarded only a symbolic $2 in damages.

The verdict came after a five-day trial and marks the latest development in a two-year legal dispute between the two companies. The conflict has escalated since Softbank acquired Arm in 2016, leading to a shift in Arm's business focus from licensing chip technology to selling its own chip designs.

Following the verdict, Arm's stock fell 1 percent, while Qualcomm's stock rose 1 percent. Both companies expressed satisfaction with parts of the ruling, but several key issues remain unresolved.

The jury determined that Arm failed to fulfill its obligations to provide software patches and supporting tools for its own chip designs. Additionally, it was found that Arm intentionally and negligently interfered with Qualcomm's business relationship with Meta Platforms, allegedly by leaking information about Qualcomm's alleged licensing breaches to the media, which delayed a deal with Meta.

This finding allows Qualcomm to argue that Arm did not negotiate in good faith over next-generation technology, a point that will be decided by a judge. The ruling could potentially lead to Qualcomm withholding billions of dollars in royalty payments to Arm for five years, a consequence Arm disputes. Further legal proceedings are expected, with the losing party likely to appeal.