Arm Holdings will cancel Qualcomm’s chip design license, reports Bloomberg News via Reuters
(Reuters) – Arm Holdings is canceling an architectural license agreement that allowed Qualcomm (NASDAQ: ) to use intellectual property to design chips, Bloomberg News reported on Tuesday, amid an ongoing legal dispute between the two companies.
Arm has given Qualcomm a 60-day notice to terminate the license agreement, the report said, adding that the contract allows Qualcomm to make its own chips based on Arm’s standards.
UK-based Arm, majority-owned by Japan’s SoftBank ( TYO: ) Group, sued Qualcomm in 2022 for failing to negotiate a new license after acquiring Nuvia.
Arm had previously said the current design for Microsoft (NASDAQ:)’s Copilot+ laptops was a direct technological descendant of Nuvia’s chip and had canceled the license for these chips.
“This is very similar to ARM – additional baseless threats designed to strengthen a long-term partner, disrupt performance-leading CPUs, and increase royalty rates without broad rights under our architectural license,” a Qualcomm spokesperson said in an email. statement.
“With this case fast approaching in December, Arm’s conspiracy appears to be an attempt to obstruct the legal process, and its claim to be terminated is baseless. We are confident that Qualcomm’s rights under its agreement with Arm will be upheld. It will not be tolerated.”
Arm declined to comment on the report.
The legal battle between the two tech giants is scheduled to begin in federal court in Delaware in December.
Arm’s victory in the lawsuit could force Qualcomm and its nearly 20 partners, including Microsoft, to halt shipments of new laptops. It will also unleash Qualcomm’s biggest strategic acquisition in recent years.
Despite the public fight between the two companies that depend on each other for profit and profit, some investors and analysts believe that they will reach an agreement before the start of the trial.
