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Arm's legal battle with Qualcomm heads to jury trial • The Register
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there are 11 comments" title="View comments on this article" href="https://forums.theregister.com/forum/all/2024/12/16/arm_qualcomm_trial/"> <strong aria-hidden="true">11</strong> <img aria-hidden="true" width="18" height="16" alt="comment bubble on white" src="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.png" srcset="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.svg"> </a> </div> </div> <div class="header_right"> <h2>The Nuvia buyer's alleged violations of license terms expected to last through Friday</h2> <div class="byline_and_dateline_and_share_and_comments"> <div class="byline_wrap"> <img class="vulture_icon" src="/design_picker/d518b499f8a6e2c65d4d8c49aca8299d54b03012/graphics/icon/vulture_red.svg" alt="icon"> <a class="byline" href="/Author/Tobias-Mann" title="Read more by this author"> Tobias Mann </a> </div> <div class="dateline_wrap"> <span class="dateline"> Mon 16 Dec 2024 <span class="slashes"> // </span> 20:30 UTC </span> </div> </div> </div> </div> <div id=main-col> <div id="article-wrapper" class="article_wrap"> <div class="left_col"> <div class="floating_bar"> <div class="sharing_widget_story_desktop uses_overlay"> <button class="top_blob" aria-label="Share this story" title="Share this story"> <img width="25" height="25" src="/design_picker/d2e337b97204af4aa34dda04c4e5d56d954b216f/graphics/icons/social_share_icon.svg" alt=""> </button> <div class="sharing_widget_overlay" id="sharing_widget_overlay_2"> <div class="sharing_box"> <a data-social="reddit" href="https://www.reddit.com/submit?url=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dreddit&title=Jury%20trial%20kicks%20off%20Arm%27s%20wrestling%20match%20with%20Qualcomm" target="_blank"> </a> <a data-social="twitter" class="twit" href="https://twitter.com/intent/tweet?text=Jury%20trial%20kicks%20off%20Arm%27s%20wrestling%20match%20with%20Qualcomm&url=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dtwitter&via=theregister" target="_blank"> </a> <a data-social="facebook" class="faceb_dialog" href="https://www.facebook.com/dialog/feed?app_id=1404095453459035&display=popup&link=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dfacebook" target="_blank"> </a> <br class="hide_after_sm"> <a data-social="linkedin" class="linkedin_social" href="https://www.linkedin.com/shareArticle?mini=true&url=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dlinkedin&title=Jury%20trial%20kicks%20off%20Arm%27s%20wrestling%20match%20with%20Qualcomm&summary=The%20Nuvia%20buyer%27s%20alleged%20violations%20of%20license%20terms%20expected%20to%20last%20through%20Friday" target="_blank"> </a> <a data-social="whatsapp" href="https://api.whatsapp.com/send?text=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dwhatsapp" target="_blank"> </a> </div> </div> </div> </div> <div class="promo_advert"> </div> </div> <div class="centre_col"> <div id="article"> <div id="body"> <p>The battle between British chip designer Arm Holdings and Qualcomm kicked off today in Delaware District Court.</p> <p>The long-awaited jury trial, which is expected to play out over the next five days, comes more than two years after Arm first <a target="_blank" href="https://www.theregister.com/2022/08/31/arm_sues_qualcomm/">filed suit</a> against one of its largest customers over allegations that Qualcomm had breached the terms of its licenses.</p> <p>The debacle began in 2021 when Qualcomm <a target="_blank" href="https://www.theregister.com/2021/03/16/qualcomm_closes_nuvia_announces_chipset/">acquired</a> Nuvia, a startup backed by former Apple chip engineers developing Arm-based processors for the datacenter. The purchase was seen as a way for Qualcomm to better compete against its rivals, most notably Apple, which a year earlier had expanded its family of Arm-compatible processors in the notebook and desktop space.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="condor" data-xsm=",fluid,mpu," data-sm=",fluid,mpu," data-md=",fluid,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" alt=""> </a> </noscript> </div> <p>However, not long after the $1.4 billion acquisition closed, Qualcomm was confronted by Arm. The crux of the issue, at least according to Arm, is that the licenses granted to Nuvia couldn't be transferred to Qualcomm without its blessing.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="falcon" data-xmd=",fluid,mpu,leaderboard," data-lg=",fluid,mpu,leaderboard," data-xlg=",fluid,billboard,superleaderboard,mpu,leaderboard," data-xxlg=",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> <div class="adun_eagle_desktop_story_wrapper"> <div aria-hidden="true" class="adun" data-pos="mid" data-raptor="eagle" data-xxlg=",mpu,dmpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> </div> <p>As we previously <a target="_blank" href="https://www.theregister.com/2022/08/31/arm_sues_qualcomm/">reported</a>, the bigger issue related to Qualcomm's use of Nuvia designs came down to royalties paid to Arm for the privilege. Nuvia was reportedly subject to a higher royalty rate than Qualcomm had negotiated for its own parts, yet following the acquisition, the latter aimed to use Nuvia's technologies at that lower rate.</p> <p>Arm's argument was that Qualcomm shouldn't get to acquire IP developed using Arm's technologies and keep paying the same royalties it always had.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="falcon" data-xsm=",fluid,mpu," data-sm=",fluid,mpu," data-md=",fluid,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> <p>After the two companies failed to reach an agreement for the use of Nuvia's core IP, Arm terminated Nuvia's licenses in early 2022, and called on Qualcomm to destroy designs derived from the acquisition. But while Qualcomm's lawyers said the company would abide by the termination, Arm remained unconvinced that Qualcomm had actually followed through with destroying designs.</p> <p>Since the legal spat began, Qualcomm has pushed ahead with its plans to develop an in-house core design to power its X-series notebook processors and <a target="_blank" href="https://www.theregister.com/2024/10/22/qualcomm_snapdragon_8_elite/">Snapdragon 8 Elite</a> smartphone chips.</p> <ul class="listinks"> <li><a href="https://www.theregister.com/2024/09/04/qualcomm_8core_xplus/">Qualcomm guns for Intel, AMD with cheaper 8-core X chips</a></li> <li><a href="https://www.theregister.com/2024/08/01/arm_q2_outlook/">Arm's lackluster Q2 outlook overshadows strong Q1 revenue growth</a></li> <li><a href="https://www.theregister.com/2024/12/12/apple_ai_chip_broadcom/">Apple reportedly building AI server processor with help from Broadcom</a></li> <li><a href="https://www.theregister.com/2024/12/09/windows_recall_intel_amd/">Microsoft rolls out Recall for Intel, AMD-based Copilot+ PCs</a></li> </ul> <p>Qualy's X-Elite and X-Plus processors are intended to compete with Intel and AMD's x86 chips and Apple's M-series processors in the notebook sphere. The chips were among <a target="_blank" href="https://www.theregister.com/2024/05/21/qualcomm_windows_microsoft/">the first</a> to power a new series of "AI PCs" that could take advantage of Microsoft's Copilot+ features announced back in May.</p> <p>Arm, for its part, hasn't been sitting idly. In October, amidst Qualcomm's annual Snapdragon Summit in Hawaii, it was <a target="_blank" href="https://www.theregister.com/2024/10/23/arm_warns_qualcomm_on_licenses/">reported</a> that Arm had issued a notice warning the US SoC giant that its architectural licenses would be canceled in 60 days. Such a notice would effectively derail its latest generation of products based on its Oryon cores.</p> <p>At the time, Arm argued Qualcomm's repeated efforts to undermine its license agreement left it no choice but to take formal action. However, the outcome, it seems, will be decided this week. Each party in the case has until Friday to make their case, and after that, it'll be up to the jury to decide.</p> <div aria-hidden="true" class="adun" id="story_eagle_xsm_sm_md_xmd_lg_xlg" data-pos="mid" data-raptor="eagle" data-xsm=",mpu,dmpu," data-sm=",mpu,dmpu," data-md=",mpu,dmpu," data-xmd=",mpu,dmpu," data-lg=",mpu,dmpu," data-xlg=",mpu,dmpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iYsgrroCZoV3csRxfTVgAAAI0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> <p>Arm CEO Rene Haas, Qualcomm CEO Cristiano Amon, Nuvia founder Gerard Williams, and SoftBank CEO Masayoshi Son are all listed as potential witnesses. ®</p> <div class="wptl btm"> <noscript><strong>Get our</strong> <a href="https://whitepapers.theregister.com/" style="text-transform:uppercase">Tech Resources</a></noscript> </div> </div> <div class="article_body_btm mobile_only"> <div class="sharing_widget_story_desktop uses_overlay"> <button class="top_blob" aria-label="Share this story" title="Share this story"> <img width="25" height="25" src="/design_picker/d2e337b97204af4aa34dda04c4e5d56d954b216f/graphics/icons/social_share_icon.svg" alt=""> <span>Share</span> </button> <div class="sharing_widget_overlay" id="sharing_widget_overlay_3"> <div class="sharing_box"> <a data-social="reddit" href="https://www.reddit.com/submit?url=https://www.theregister.com/2024/12/16/arm_qualcomm_trial/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dreddit&title=Jury%20trial%20kicks%20off%20Arm%27s%20wrestling%20match%20with%20Qualcomm" target="_blank"> 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