Qualcomm's Legal Victory over Arm

Qualcomm scored a major legal victory on Friday when a U.S. jury determined that the company didn't violate its licensing agreement for UK-based Arm's chip designs after acquiring Nuvia.

Background

Arm had argued that Qualcomm was obliged to renegotiate the existing agreement with Nuvia following the acquisition of the startup. The British chip designer requested that Qualcomm destroy the designs obtained through the acquisition.

Qualcomm's Defense

Qualcomm contended that it had a separate license for Arm technology covering its work, which is vital for Qualcomm's expansion into the computer processor market.

Jury Deliberation

The jury could not reach a consensus on whether Nuvia breached its license agreement.

Market Reaction

Qualcomm Incorporated (NASDAQ:QCOM) saw a 1.8% increase in after-hours trading on Friday, whereas Arm Holdings ADR (NASDAQ:ARM) experienced a 1.7% decline.