Arm Holdings Plc has terminated its architectural license agreement with Qualcomm Inc., ending Qualcomm’s ability to use Arm’s intellectual property for chip design. The termination, reported by Bloomberg, follows a 60-day notice from Arm. This action escalates an existing legal dispute between the two companies, set to begin in Delaware federal court this December.
Arm’s lawsuit, filed in 2022, alleges that Qualcomm violated the licensing agreement by utilizing technology acquired from Nuvia, a startup purchased by Qualcomm in 2021. Arm contends that Qualcomm’s use of Nuvia’s designs, intended for a startup and not transferable without Arm’s consent, constitutes a breach of contract. Nuvia’s licenses were terminated in March 2022, and Arm claims Qualcomm continued development despite this.
Arm asserts that its legal action is necessary to protect its intellectual property, its partners, and the broader ecosystem it has built. The company highlights the billions of dollars invested in its leading technology and emphasizes the importance of upholding licensing agreements to ensure the availability of valid Arm-based products. Qualcomm’s acquisition of Nuvia, initially viewed as routine, has become a central point of contention in this high-stakes legal battle.
