Qualcomm Sues Arm Over Unpaid Royalties and Data Leak
Chipmaker Qualcomm has sued Arm, alleging it withheld chip testing tools and leaked confidential information. Qualcomm is seeking to avoid paying billions in royalties for up to five years.
Chip manufacturer Qualcomm has filed a lawsuit against Arm, accusing the company of breaching contracts and leaking confidential information. The trial began Monday in Delaware federal court. Qualcomm claims Arm has withheld contractually obligated chip testing tools and leaked information to the press, which has damaged Qualcomm's chip deals with Meta.
Qualcomm is seeking to cease royalty payments to Arm, potentially worth billions of dollars, for up to five years. The company also accuses Arm of threatening to terminate a critical licensing agreement in 2024 and alleges Arm leaked this threat to media outlets. This caused Meta to worry about Qualcomm losing its Arm license, reducing the deal's value by $170 million.
Arm's legal team disputes these claims, arguing that Meta's reduced investment in VR headsets was an independent decision and that Arm's actions did not cause Qualcomm any financial harm. The company also questions Qualcomm's attempt to adjust outdated licensing terms for new technologies with significantly more processor cores.
Qualcomm CEO Cristiano Amon testified on Monday, during which Qualcomm's lawyers highlighted a substantial increase in licensing fees for the latest Arm architecture. The five-day trial marks a new phase in the ongoing dispute between Arm and Qualcomm, which began with Arm suing Qualcomm in 2022.