Qualcomm Wins Arm License Breach Verdict, Awarded $2 in Damages

A Delaware jury found that Arm Holdings breached its architectural license agreement with Qualcomm and intentionally interfered with Qualcomm's business relationship with Meta Platforms, then awarded Qualcomm $2 in nominal damages, Reuters reported.

The verdict closed a five-day trial, the second in two years between the companies, after a relationship that frayed once SoftBank Group took control of Arm in 2016. CNBC reported that Arm shares fell about 1% on the news while Qualcomm rose roughly 1%.

At the center of the case was a chip sale to Meta that Qualcomm says never happened because of Arm's conduct. Qualcomm accused Arm of "scuttling a $170 million chip sale to Meta by withholding software, violating pricing structures, and leaking a license-termination warning letter," including a 2024 termination warning leaked to Bloomberg that Qualcomm said damaged its business reputation.

Both sides came out claiming victory. Qualcomm said the ruling confirmed Arm's breach; Arm said "the jury ruled in its favor on four claims" and that the minimal damages validated its position.

It is the latest round in a feud we have been tracking across 10 Qualcomm and 6 Arm stories over the last 90 days, most recently last month's Qualcomm-Apple patent licensing extension.