Qualcomm-Arm Dispute: Arm Asks For Destruction Of Patent-Infringing Nuvia Designs

A high-stakes legal dispute between Arm and Qualcomm started earlier this week, with both companies presenting sharply contrasting narratives about a complex intellectual property licensing conflict that could significantly impact the artificial intelligence (AI) PC market, says a report by news agency Reuters.

This comes weeks after Arm, which licences its Arm CPU architecture to chip design firms including Qualcomm, MediaTek, Samsung and Apple, issued a notice to Qualcomm terminating its architectural licence in 60 days, according to Bloomberg.

The Qualcomm-Arm Dispute

The dispute centres on chip-making giant Qualcomm's use of Arm's technology following its $1.4 billion acquisition of chip startup Nuvia in 2021. Qualcomm leveraged Nuvia's designs to develop new low-powered AI PC chips, which industry players like Microsoft hope will help Windows-based laptops regain competitive ground against Apple's market leadership.

During opening arguments, attorneys from both sides presented evidence, including contracts, emails, and internal communications, to support their respective positions. 

What Arm Says

Arm's attorney, Daralyn Durie, emphasised the company's aim to enforce its rights, arguing that Qualcomm was using Arm's technology without proper authorisation.

Qualcomm's Views

However, Qualcomm's legal representative, Karen Dunn, portrayed the lawsuit as a desperate attempt by Arm to stifle competition. She suggested that Arm, facing technological obsolescence, was primarily motivated by a desire to impede Qualcomm's innovation.

The trial is expected to feature testimony from key industry executives, including Arm's CEO Rene Haas, Qualcomm's CEO Cristiano Amon, and Nuvia founder Gerard Williams, who previously worked as a senior executive in Apple's chip division.

At the heart of the dispute are different interpretations of licensing agreements.

Arm says that Qualcomm must renegotiate contract terms for using Nuvia-based designs, while Qualcomm maintains that its existing license covers custom CPU designs. It is pertinent to note that Arm is not seeking monetary damages but has requested the destruction of the Nuvia designs.

Qualcomm is said to be paying Arm approximately $300 million annually in licensing fees. The outcome is likely to have far-reaching implications for the competitive landscape of AI and computer chip technologies.