- UK firm’s suit intended to “strong-arm” Qualcomm, suit says
- Legal fight centers on technology acquired in Nuvia buyout
Qualcomm Inc. countersued Arm Ltd. over claims the chipmaker violated its licensing agreements and trademarks tied to a 2021 acquisition, saying the UK-based tech firm doesn’t have a legitimate basis for its allegations.
San Diego-based Qualcomm wants a federal judge in Delaware to conclude it didn’t trample on Arm’s licensing contracts as part of Qualcomm’s $1.4 billion buyout of chip startupNuvia Inc., according to a court filing Wednesday.
The dispute focuses on Arm’s licenses with Nuvia for technology used in chip designs. Arm, owned by SoftBank Group Corp., sued Qualcomm for breach of contract and trademark infringement in September, accusing the firm of using the proprietary innovations without permission. In the past, Qualcomm had been one of Arm’s biggest customers.
Qualcomm’s lawyers allege Arm’s goal is to “strong-arm Qualcomm into renegotiating the financial terms of the parties’ longstanding license agreements, using this baseless lawsuit as leverage.”
Since Qualcomm and Arm are two of the world’s most influential chip companies, the case has drawn attention in the tech industry. Qualcomm is the biggest maker of the processors and modems used in smartphones.
Representatives of Arm didn’t immediately respond to a request for comment.
Qualcomm acquired Nuvia last year to beef up its technology and allow it to field more powerful chips. It’s part of a broader strategy by Qualcomm chief executive officer, Cristiano Amon, to decrease his company’s reliance on the smartphone industry and grab a share of the laptop chip market and the lucrative server processor business.
Arm’s suit is designed to hamper Qualcomm’s plans, the US company’s attorneys argued.
“With this lawsuit, Arm makes clear to the marketplace it will act recklessly and opportunistically, threatening the development of new and innovative products as a negotiating tactic, not because it has valid license and trademark claims,” according to the filing.
The case is Arm Ltd v. Qualcomm Inc., No. 22-1146, US District Court for the District of Delaware (Wilmington)
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