Qualcomm Wins Legal Case Against Arm but Receives Only $2 in Damages

The jury in Qualcomm's lawsuit against Arm confirmed breach of contract and disruption of business relations with Meta.

In Qualcomm's lawsuit against ARM, a jury upheld breach of contract and breach of business relationship with Meta.

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A Delaware court jury found that Arm breached its technology license agreement with Qualcomm and intentionally disrupted the company's business relationship with Meta. However, the jury awarded a total of only $2 in damages for the two violations. This decision does not mean the end of the legal dispute between the two companies, and the judge of the case still has to decide on several other important issues.

According to Reuters, this case reached a verdict after five days of trial in a court in Delaware. This was the second trial between ARM and Qualcomm in the past two years, in which the two companies' disputes over technology licensing agreements and their business relationship were examined.

The jury found that Arm did not fulfill its obligations to provide software patches and tools needed for its designs. The panel also stated that Aram willfully and negligently interfered with Qualcomm's business relationship with Meta.

Despite these findings, the damages awarded for the two violations were only $1 each. In contrast, the jury found in Arm's favor on the other five breach-of-contract claims.

The dispute over the business relationship between Qualcomm and Meta dates back to 2024. Qualcomm had claimed that when it was on the verge of finalizing the deal with Meta, Aram provided Ambassador Arjan with information that Qualcomm had breached the technology license agreement. According to Qualcomm, the release of this information caused a delay in the agreement with Meta.

After the verdict was announced, both companies released statements expressing satisfaction with parts of the court's outcome. "We are pleased with the jury's decision, which found in Arm's favor on four claims and awarded only $1 in damages on each of Qualcomm's other two claims," Arm said in a statement.

The company also accused Qualcomm of seeking to avoid paying "billions of dollars" in royalties based on existing agreements between the two companies. Aram emphasized that the jury's verdict shows that the company acted in good faith in accordance with its technology license agreement.

Qualcomm also said in a statement that it was pleased that the jury had found Arm's breach of the long-standing Architectural License Agreement (ALA), the company's failure to perform its obligations and its intentional act to disrupt Qualcomm's business activities.

Despite the jury's verdict, several important issues remain unresolved. A U.S. District Court judge will have to decide the remaining disputes between the two companies at the next stage of the case.

ARM and Qualcomm have been involved in legal disputes for several years. In 2022, Arm sued Nuvia after it was bought by Qualcomm. Novia also had the license to use ARM technologies.

Arm argued at the time that Qualcomm had not received the necessary permissions to transfer Novia's licenses and that this action was a breach of contract. Qualcomm announced last year that it had won the case in full after the court dismissed Arm's remaining claims.

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