Qualcomm has secured a victory in its legal dispute with Arm Holdings, after a jury found that the chipmaker did not violate its architecture license agreement (ALA) by using Nuvia's IP in its Snapdragon X processors.
The Dispute Over Nuvia IP
Arm had accused Qualcomm of breaching licensing terms by using the Armv8-based Oryon cores, originally developed by Nuvia for server processors, in its Snapdragon X chips for client PCs. Arm argued this required a renegotiation of the license agreement following Qualcomm's acquisition of Nuvia. Arm demanded that Qualcomm destroy the designs, claiming they violated the original Nuvia licensing terms.
Qualcomm countered by stating its existing ALA covered products designed by entities it owns, including Nuvia. Gerard Williams III, a lead developer behind Oryon, stated that less than 1% of Arm's technology was present in the final Nuvia design.
Jury Sides with Qualcomm
The Delaware jury agreed with Qualcomm, concluding that the Snapdragon X processors do not violate the company's licensing agreement with Arm. This decision allows Qualcomm to continue selling its Snapdragon X products without destroying their designs.
"We are pleased with today's decision. The jury has vindicated Qualcomm's right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm's contract with Arm." - Qualcomm statement.
Unresolved Issues and Possible Retrial
However, the jury could not unanimously agree on whether Nuvia itself violated its contract with Arm, which stipulated that it would develop server processors. This unresolved issue could lead to a new trial or further mediation. Judge Maryellen Noreika has requested that both parties attempt mediation.
Qualcomm's Strategic Move
The Oryon cores acquired through the Nuvia acquisition are crucial for Qualcomm's competitive position against Arm-based designs from Apple and x86 processors from AMD and Intel. Qualcomm's goal with the Oryon cores is to further compete in the PC market, where it currently holds 0.8% of the market share.
Financial Implications for Arm
Qualcomm contributes a significant amount (around 10%, over $300 million in 2023) to Arm's total revenue. Before developing its custom Oryon cores, Qualcomm relied on slightly modified Cortex cores from Arm, and paid significant fees for the ISA license and custom core designs. The dispute highlights the complex licensing relationships within the semiconductor industry.
