Qualcomm has secured a narrow but potentially consequential verdict against ARM in Delaware federal court. A jury found that ARM breached its licensing agreement with Qualcomm and intentionally interfered with Qualcomm’s business relationship with Meta, awarding Qualcomm symbolic damages of $2.
The five-day trial ended with $1 in damages for each of the two claims ARM lost. ARM prevailed on four of the six claims considered by the jury, allowing both companies to characterize the outcome as a win.
Qualcomm said the verdict establishes that ARM violated obligations under the Architecture License Agreement, or ALA, and supports its allegation that ARM sought to disrupt Qualcomm’s business. Qualcomm continues to develop its Oryon processors.
The financial impact could extend far beyond the $2 award. Qualcomm uses ARM architecture under an agreement that runs through 2033, and it has cited a contractual provision that could allow it to avoid royalty payments for five years after a breach of the agreement.
That provision has not been resolved, and its eventual interpretation could put billions of dollars in royalties at stake. The jury’s limited damages award therefore does little to settle the broader licensing conflict between the two chip-design companies.
