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Arm Squares Off Against Qualcomm: Day 1
As I stepped into the courtroom yesterday, it was clear that this trial would be a battle for the ages. The tension in the air was palpable as representatives from Arm and Qualcomm faced off over the disputed Nuvia license agreement.
The day began with Arm’s attorney, Robert Van Nest, presenting the company’s position on the events leading up to the termination of the Nuvia license. Van Nest emphasized that Arm had the right to approve any transfer of the license, citing the Arm Licensing Agreement (ALA) and the fact that Qualcomm requested a transfer of the Phoenix CPU core design.
The key point here is that Qualcomm already has an existing ALA license, which includes the upcoming Arm V9 architecture and does not expire until 2028. However, Qualcomm also has the option to extend it until 2033 for an additional fee of $1 million per year. It’s essential to note that this contract was referred to as “bombproof” by Arm, suggesting there is no way to nullify or negate its terms.
Arm sought to modify the existing license and negotiate a new one with higher royalty rates for Nuvia-based applications in PCs, automotive, and data centers. Qualcomm refused these demands, which led to the termination of the Nuvia license.
It’s crucial to remember that this trial is not about determining whether Arm or Qualcomm is correct; it’s about determining if there was a breach of the Nuvia ALA license and what manner it was breached.
As the day progressed, it became clear that the relationship between the two companies had become increasingly caustic. According to testimony, Arm CEO Rene Haas referred to Qualcomm as “the enemy” during one meeting due to frustrations with the negotiations.
Source: www.forbes.com
