Qualcomm (QCOM) Wins Legal Battle with Arm Over Nuvia Technology

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Dec 21, 2024
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Qualcomm (QCOM, Financial) has successfully defended its right to use Nuvia technology for chip development, following a five-day legal dispute with Arm. The jury supported Qualcomm, confirming that its CPU development, including patents acquired from Nuvia, aligns with the ALA agreement between the companies. Arm failed to prove Qualcomm violated the agreement, allowing Qualcomm to continue selling its custom chip products.

The ALA agreement permits companies to develop chip cores using Arm's instruction set, offering more flexibility than the TLA agreement. Following the verdict, Qualcomm expressed satisfaction and stated its commitment to developing Oryon Arm-compatible custom CPUs. Qualcomm's stock rose by 2.03%, while Arm's fell by 1.78% after the market closed.

Qualcomm has been a major customer of Arm, using its open core versions since the Snapdragon 835. The acquisition of Nuvia in 2021, whose chips are based on Arm's license, sparked the dispute. Recently, Qualcomm launched SoC products with integrated Oryon CPUs, targeting smartphones, AIPC, and smart driving sectors.

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