Arm plans to appeal Qualcomm's victory in Nuvia licensing dispute

Arm Holdings announced on Tuesday that it plans to appeal a judge’s ruling after Qualcomm’s (QCOM.O) jury verdict in a licensing dispute was upheld. Qualcomm won the case in a U.S. Federal Court in Delaware in December 2024, when a jury determined that central processing units (CPUs) produced by its subsidiary, Nuvia, were licensed adequately under a contract with Arm.

The jury reached a verdict on two out of three counts and deadlocked on the third count, resulting in a mistrial. Arm Holdings requested a new trial or the reversal of the verdict on the two counts Qualcomm secured from Judge Maryellen Noreika. The Arm Plc company made two requests, but the judge denied them.

Arm Holdings challenges Qualcomm over Nuvia deal

Arm accused Qualcomm of breaching the terms of a licensing agreement after Qualcomm acquired startup Nuvia in March 2021 for $1.4 billion and then used Nuvia’s technology without paying the semiconductor IP company a higher licensing rate.

Arm Plc claimed that the Nuvia agreement should have been renegotiated after Qualcomm bought the startup and demanded that the San Diego company destroy the designs it acquired in the buyout.

Qualcomm CEO Christiano Amon testified that the goal of purchasing Nuvia was to avoid paying ARM up to $1.4 billion in license fees. Qualcomm’s board disapproved of acquiring a firm that lacked experience in designing CPUs for smartphones and tablets.

Arm Holdings stated in a press release that it remains confident in its position in the ongoing dispute with Qualcomm and will immediately file an appeal seeking to overturn the judgment. Qualcomm claimed that the ruling supported its assertion that it had not broken its contract with Arm.

Ann Chaplin, General Counsel & Corporate Secretary of Qualcomm Incorporated, stated that Qualcomm’s right to innovate prevailed in the case, and they hope Arm will return to fair and competitive practices in dealing with the chip designer ecosystem.

Qualcomm secures court victory, expands push into AI and PC chips

A U.S. District Court judge handed Qualcomm a victory, dismissing Arm’s efforts to impede innovation and ruling that neither Qualcomm nor its subsidiary, Nuvia, had violated their license agreements with Arm.

“With the Court’s decision today, Qualcomm and its subsidiary Nuvia have achieved a full victory. This decision follows Qualcomm’s December 2024 jury trial win and is a full and final judgment in Qualcomm’s favor.”

–Ann Chaplin–  General Counsel and  Corporate Secretary, Qualcomm Incorporated

Chaplin emphasized that the win reinforces Qualcomm’s capability to drive innovation across the semiconductor industry and address the world’s technological challenges. 

Qualcomm stated that its separate lawsuit against the chip architecture firm, alleging breach of contract, remains in place, with a trial scheduled for March 2026.

Arm Holdings plc (NASDAQ: ARM) saw a minor pre-market decline to $140.80, down 0.49%, before closing at $141.49 on October 1, 2025. In addition to ongoing legal battles with Qualcomm over intellectual property licensing, the company competes in the semiconductor market with rivals such as NVIDIA, AMD, and Broadcom. 

On September 30, 2025, Qualcomm Inc. (QCOM) closed at $166.36, up 0.64%, with a year-on-year range of $120.80 to $182.10. Its $179.30 billion market capitalization is backed by a dividend yield of 2.14% and a P/E ratio of 16.05. 

Arm Holdings plc released a letter to its shareholders on July 30, 2025, that included the company’s first-quarter fiscal year 2026 results. Arm announced $1.05 billion in revenue for the first quarter of fiscal 2026, marking the company’s highest Q1 revenue ever and its second-best quarter overall.

Arm Plc revealed that a record first quarter was achieved by royalty revenue, which increased 25% year-on-year to $585 million. Arm Plc reported that license income was $468 million, which was in line with estimates but lower than the same period the previous year.

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