US Jury Deadlocked in Arm vs. Qualcomm Trial Over Licensing Dispute

A US jury remains deadlocked in the high-stakes trial between Arm Holdings and Qualcomm over a licensing dispute involving Nuvia's chip designs, with deliberations ongoing.

In a closely watched legal battle, a US jury in Delaware is deadlocked in the trial between Arm Holdings and Qualcomm, a case that could have significant implications for the technology industry. The dispute centers around Qualcomm's acquisition of Nuvia, a chip design firm, and the subsequent use of Nuvia's technology, which Arm claims violates its licensing agreements.

Arm Holdings, a major player in the chip design industry, filed a lawsuit against Qualcomm, demanding the destruction of chip designs acquired from Nuvia. These designs are crucial to Qualcomm's strategy to expand into the personal computer market, a move that could challenge industry giants like Apple and Intel. The jury is tasked with answering three key questions: whether Nuvia breached its agreement with Arm, whether Qualcomm breached Nuvia's Arm license agreement, and whether Qualcomm's processor designs are properly licensed under its agreement with Arm.

The trial has seen high-profile testimonies, including from Qualcomm's CEO Cristiano Amon, who argued that Arm's actions have created uncertainty among Qualcomm's customers, including Samsung. Amon contended that Arm misled customers about the expiration of licensing agreements, which Arm denies. Arm's CEO Rene Haas testified that Qualcomm's use of Nuvia's technology is costing Arm $50 million annually in lost revenue.

The case has broader implications for the tech industry, as it could influence future intellectual property licensing agreements. Qualcomm argues that Arm is attempting to leverage the lawsuit to gain control over the smartphone chip market, while Arm insists it is merely enforcing its contractual rights. The jury's decision could impact Qualcomm's ability to continue using Nuvia's designs, which are integral to its new high-speed chips for AI laptops and other devices.

As the jury continues deliberations, the outcome remains uncertain, but the stakes are high for both companies and the broader tech industry.

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