Arm and Qualcomm Battle in Court Over Chip Design Rights
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The future of Qualcomm's push into the laptop business is at stake in a Delaware court as Arm and Qualcomm clash over intellectual property rights related to Arm's computing architecture, reports Reuters. The trial focuses on the ownership of designs based on Arm's architecture, with Qualcomm's use of technology acquired from Nuvia, a company it purchased in 2021, at the heart of the dispute.
Arm's architecture, ubiquitous in smartphones and increasingly in laptops and data centers, is central to Qualcomm's efforts to compete with Intel in the laptop market. The dispute centers on whether Nuvia, acquired by Qualcomm for $1.4 billion, was entitled to transfer its core designs based on Arm's technology following the sale.
Lawyers for both sides questioned Gerard Williams, a former Apple engineer who founded Nuvia, about the extent to which Nuvia's core designs were derived from Arm's technology. Arm's attorney pressed Williams to acknowledge that the licensing agreement covered "derivatives" and "modifications" of its technology, while Williams maintained that Nuvia's designs were largely independent of Arm's contributions.
Williams testified that the amount of Arm technology in Qualcomm chips is "one percent or less," highlighting the significant differences in the companies' views on the extent of Arm's intellectual property embedded in Nuvia's designs.
Analysts cited by Reuters estimate that Qualcomm pays Arm approximately $300 million annually for licensing fees. Evidence presented at the trial suggests that Arm believes it is losing out on an additional $50 million per year due to Qualcomm's acquisition of Nuvia.
The trial's outcome could have far-reaching implications for the chip industry, determining the scope of intellectual property rights associated with Arm's architecture and potentially influencing future licensing agreements. The jury is expected to deliver a verdict this week, with Qualcomm CEO Cristiano Amon potentially taking the witness stand.