Last December, Qualcomm scored two significant wins in a legal fight against Arm Holdings over licensing issues. These disputes could potentially have resulted in the demise of all Copilot+ PCs using Snapdragon chips. This week, it was announced that Arm has withdrawn its threat to end their licensing agreement with Qualcomm.
During an earnings call this week, Qualcomm shared the following update:
The court’s decision validated Qualcomm’s CPU advancements and confirmed that Qualcomm’s agreement with ARM grants them a license for their products incorporating our exclusive Oryon CPUs, in sectors including smartphones, automotive, future PCs, Internet of Things (IoT), and data centers. Moreover, ARM has announced the withdrawal of its termination notice dated October 22, 2024, and indicated that they currently have no intention of ending the Qualcomm Architecture License Agreement.
Toward the end of last year, Qualcomm and Arm engaged in a high-stakes game of legal brinkmanship. Arm warned it might terminate its licensing contract with Qualcomm, a move that could have significant repercussions for both parties and numerous industries. Qualcomm’s chips, which are licensed from Arm, are integral components in millions of devices globally, including numerous well-known smartphones and computers. These chips are also essential in datacenters, IoT devices, and manufacturing.
The dispute involving Arm and Qualcomm primarily revolved around Qualcomm’s Snapdragon X processors. These chips, which form the basis for many devices, were developed using technology licensed from Arm. However, Arm alleged that Qualcomm had not obtained the necessary licensing. In response, Qualcomm argued that previous licensing agreements between Arm and Nuvia (a company acquired by Qualcomm in 2021) still applied. The latest Snapdragon 8 Elite chip, also incorporating technology from Oryon (another company acquired by Nuvia), could potentially be impacted if the licensing agreement between Arm and Qualcomm were to expire. This could potentially affect the smartphones using these chips as well.
In December, it was decided by a jury that Qualcomm developed its Snapdragon X chips using licenses from Arm. However, the decision in December only addressed two out of the three claims made by Arm, leaving room for further legal disputes. Although there might be more legal battles between Arm and Qualcomm down the line, this week’s news represents a victory for Qualcomm. Furthermore, it indicates that Snapdragon-powered PCs will continue to be available on store shelves.
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2025-02-06 20:39