Following its win against Arm in its licensing dispute around CPU cores developed by Nuvia, Qualcomm sued Arm in the U.S. early this year, accusing its partner of breaching the terms of their contract and causing damages to the company. This week a federal jury in Delaware has ruled that Arm indeed breached its contractual obligations with Qualcomm and intentionally interfered with the chipmaker's business relationship with Meta. However, the jury awarded Qualcomm only $2 in nominal damages and rejected several other claims against Arm. As a result, both companies declared victory in the latest round of their legal dispute, which could still have massive financial consequences.

The verdict followed a five-day trial in Wilmington, Delaware, during which Qualcomm accused Arm of violating the Architecture License Agreement (ALA), withholding software patches and processor verification tools, and refusing to offer commercially reasonable licensing terms. In particular, Qualcomm alleged that Arm deliberately withheld Arm Compliance Kit (ACK) verification materials and software patches necessary to validate its custom CPUs. Qualcomm also claimed that Arm refused to renew licenses for Cortex-A720, Cortex-A520, and Cortex-M55 processor cores under its Technology License Agreement (TLA).

Qualcomm further alleged that Arm deliberately undermined its relationships with customers by threatening to terminate its architecture license and leaking the corresponding notice to the media in October 2024. The company said that Arm's actions disrupted its negotiations with Meta and other customers, which caused financial losses as the company failed to land contracts with certain clients. Arm denied any wrongdoing and argued that Qualcomm had failed to demonstrate substantial financial losses.

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