Qualcomm and Arm kick off trial, potential for huge damages in focus
QCOM•Qualcomm and Arm began a trial over alleged contract breaches, with Qualcomm seeking to stop paying royalties to Arm for up to five years, potentially worth billions of dollars. A judge is weighing whether to strike the contract term that could limit Qualcomm to smaller damages.
1. Trial opens
Qualcomm accused Arm of withholding chip-testing tools required under contract and leaking its 2024 threat to terminate a license agreement in a way that harmed Qualcomm’s discussions for a chip deal with Meta. Qualcomm attorney Karen Dunn cited the 2021 acquisition of Nuvia and internal documents she said showed Arm executives viewed Qualcomm as the “enemy.”
2. Arm disputes claims
Arm attorney Gregg LoCascio argued Qualcomm had not suffered actual injury and was using litigation as leverage in a business dispute. Arm denies breaching the contract and says the chip deals Qualcomm cites were speculative.
3. Damages and negotiations
Judge Maryellen Noreika is weighing whether to strike a contract term that could limit Qualcomm to smaller damages rather than a five-year hold on royalty payments. In a related bench trial, she will also consider whether Arm negotiated in good faith over the next version of its chip technology; Qualcomm’s agreement with Arm runs through 2033.
