Update (Dec. 20, 7:45 p.m. ET): Arm spokesperson statement has been added.
Key Points
- In a crucial legal battle, a jury ruled in favor of Qualcomm on their custom Oryon CPU cores, which power Snapdragon X Elite and Snapdragon 8 Elite.
- Arm has announced its intention to pursue a retrial following the jury’s inability to come to a unanimous decision.
- This outcome allows Qualcomm to continue selling products with processors designed using Nuvia technology.
The lawsuit between Arm and Qualcomm regarding the chipmaker’s custom CPU cores concluded in a mistrial on Friday, Dec. 20, as per Reuters. The mistrial outcome raises questions about Arm’s concerns with Qualcomm’s actions, prompting Arm to plan for a retrial. Nevertheless, the jury determined that Qualcomm holds a valid license for its Nuvia cores, which was a key issue in the disagreement between the two companies.
The deadlock in the trial resulted from the jury’s failure to reach a consensus on whether Nuvia violated its agreement with Arm. Despite this, the presiding judge cautioned the companies against pursuing a retrial.
“I don’t believe either party had a clear victory or would achieve one if the case is retried,” remarked U.S. Judge Maryellen Noreika during the court proceedings, according to Reuters.
The judge recommended that the companies attempt to settle their differences privately, suggesting that a retrial would likely yield the same uncertain outcome. However, Arm expressed its decision to seek a retrial in a statement to Android Central.
“We are disappointed with the jury’s inability to reach a consensus on the claims. Due to the jury deadlock, we plan to request a retrial,” stated an Arm spokesperson in an email to Android Central. “Throughout this process, our primary focus has been safeguarding Arm’s intellectual property and the unmatched ecosystem we have cultivated with our valued partners over three decades. We remain dedicated to promoting innovation in our dynamic industry, supporting our partners, and driving the future of computing forward.”
Qualcomm, on the other hand, welcomed the jury’s decision and the trial’s resolution.
“We are pleased with the jury’s decision. Today’s ruling affirms Qualcomm’s right to innovate and confirms that all Qualcomm products involved in the case are protected under Qualcomm’s agreement with Arm,” mentioned Ann Chaplin, Qualcomm’s general counsel, in a statement to Android Central. “We will continue to develop cutting-edge, top-tier products that benefit consumers globally, featuring our exceptional Oryon ARM-compatible custom CPUs.”
The dispute between Arm and Qualcomm began two years ago, stemming from their conflicting views on the royalties owed to Arm for Qualcomm’s use of custom CPU designs. The situation was further complicated by Qualcomm’s acquisition of startup chip designer Nuvia for $1.4 billion in 2021, raising concerns about the validity of Qualcomm’s licenses to the Arm designs originally licensed to Nuvia prior to the acquisition. These designs led to the development of Qualcomm’s custom Oryon cores, which powered Snapdragon X Elite and later Snapdragon 8 Elite.
The tension escalated over the summer when Arm expressed the desire to have all Snapdragon X laptops “eliminated.” The core of the disagreement revolved around financial matters and royalties, with court documents cited by Reuters indicating that Qualcomm’s acquisition of Nuvia could have resulted in Arm losing $50 million in revenue.