Qualcomm and Arm head to trial again, potential for huge damages in focus
QCOM•Qualcomm and Arm are back in court over allegations that Arm withheld chip testing tools and leaked a termination threat, with Qualcomm seeking to stop royalty payments potentially worth billions of dollars for up to five years. A judge is weighing whether Qualcomm can pursue that contract term.
1. Dispute returns to court
Qualcomm and Arm are set to begin a five-day jury trial in Delaware over Qualcomm’s claims that Arm withheld chip testing tools required under contract. Qualcomm also alleges that Arm leaked its 2024 threat to terminate a key license in a way that harmed discussions for a chip deal with Meta Platforms.
2. Damages and contract terms
Qualcomm is seeking to stop paying royalties to Arm for up to five years, potentially worth billions of dollars. Judge Maryellen Noreika is weighing whether to dismiss that contract term, which could limit Qualcomm to seeking a smaller amount of damages. Arm denies breaching the contract and says the chip deals Qualcomm cites were speculative.
3. Further contract arguments
Arm argues Qualcomm cannot seek damages over the leak because Qualcomm leaked non-public details of antitrust probes into Arm. In a related bench trial, Noreika will hear arguments over whether Arm negotiated in good faith for the next version of its chip technology; Qualcomm’s agreement with Arm runs through 2033.
