The verdict on the trial between Qualcomm and ARM over potential unauthorized use of patents was expected to be released this week. The Oryon cores, which Qualcomm has been developing for some time, were the focus of the case. Even before the trial, the balance appeared to favor the parent company of the Snapdragon chips. The jury has now ratified it.
Qualcomm wins Oryon cores trial against ARM
The outcome of the trial has been beneficial for Qualcomm, but there are things to consider. The jury in Delaware, composed of eight people, determined that the Snapdragon X and Snapdragon 8 Elite processors—powered by the new custom Oryon cores—do not violate the licensing agreement between Qualcomm and ARM.
Qualcomm has always insisted that the current deal allowed it to access ARM technologies from entities it owns. Having acquired Nuvia, Qualcomm believed it could use its technologies, even if it had its own previous agreements with ARM. The jury sided with Qualcomm on these allegations, so the sale of the Oryon-powered Snapdragon chips is not in jeopardy.
However, the jury did not reach a unanimous decision on whether Nuvia—the company acquired by Qualcomm—violated its own licensing agreements with ARM by potentially sharing the latter’s technology with Qualcomm.
This allows for a potential retrial on the same issue in the future. That said, in the court’s view, further trials would only be a waste of time and resources, as the judges would reach the same indeterminacy. So, they recommend that Qualcomm and ARM reach an agreement rather than continue to fight in court.
Although it is not a definitive victory for Qualcomm, the ruling is very favorable for the company. After all, they will be able to continue selling their Snapdragon processors with Oryon cores without problems. Plus, the company doesn’t have to pay any further licensing fees to ARM. However, they may want to strike a new licensing deal to try to smooth things over and not get embroiled in more potential trials with the brand.
Some background on the trial
Qualcomm bought Nuvia in 2021 to boost its position in the ARM laptop market. The company had already launched Snapdragon chips for laptops in the past, but they were not so competitive. Oryon core development and a strong focus on AI were the firm’s response to turn things around. In addition, Snapdragon mobile processors inherited Oryon cores this year, starting with the Snapdragon 8 Elite.
That said, Nuvia had its own licensing agreements with ARM. Qualcomm felt that buying the company gave it access to all of the developments, including those based on ARM technology. Meanwhile, ARM claimed that Qualcomm needed to strike a new licensing agreement with them. Otherwise, they would be using ARM technologies without authorization. The company demanded a halt to the sale of chips with technologies inherited from Nuvia. Namely, the Oryon-powered Snapdragon SoCs. To achieve this, they attempted to unilaterally cancel their current licensing agreement with Qualcomm.
ARM was not pleased with Qualcomm’s development of its own CPU cores. About 10% of its revenues come from licensing agreements with them. Qualcomm has been using ARM Cortex cores for some time for its Snapdragon chips. But now, the Oryon Cores will help the company save a lot of licensing fees in the long run.
Some interesting facts revealed during the trial
During the trial, Christiano Amon, CEO of Qualcomm, revealed an interesting fact that did not please ARM. He admitted that the company saw the purchase of Nuvia as an opportunity to avoid paying up to $1.4 billion to ARM in licensing fees. Despite the questionable “morality” of the movement, the law supported it. After all, the judges determined that, in fact, Qualcomm did not violate its licensing agreement with ARM by using Nuvia technology.
Lawyers from both sides also questioned Gerard Williams, the founder of Nuvia and a former Apple engineer. According to Williams, the Oryon cores make up less than 1% of the ARM technology licensed to Nuvia.
Position of both companies regarding the verdict
Both Qualcomm and ARM offered statements regarding the trial verdict. Starting with Qualcomm, it states the following:
We are pleased with today’s decision. The jury has vindicated Qualcomm’s right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with ARM. We will continue to develop performance-leading, world-class products that benefit consumers worldwide, with our incredible Oryon ARM-compliant custom CPUs.
On the other hand, as it could not be otherwise, ARM showed disappointment. A company spokesperson said the goal of the trial was to protect its intellectual property. Only time will tell if there will be a new licensing agreement that satisfies both parties outside of the juries.
