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Arm Sues Qualcomm and Nuvia for Breach of License Agreement and Trademark Infringement, Breaks Up?

$Qualcomm(QCOM.US)$ $SOFTBANK GROUP CO(SFTBY.US)$ Arm is seeking an injunction that would require Qualcomm to destroy designs developed under Nuvia's license agreement with Arm. It claims its approval is needed to transfer these to Qualcomm.

Qualcomm, which bought Nuvia for $1.4 billion last year, says Arm has no right to interfere with Qualcomm or NUVIA's innovations. Qualcomm general counsel Ann Chaplin said in a statement, "Arm's complaint ignores the fact that Qualcomm has broad, well-established licensing rights in its custom-designed CPUs, and we are confident that those rights will be affirmed."

The matter illustrates a major break between Qualcomm and one of its most important technology partners, Arm. Qualcomm has previously relied on Arm, but in recent years, the two companies have been at odds.

Some within Qualcomm have privately complained that Arm's pace of innovation has slowed, causing Qualcomm's chips to lag behind Apple's processors in terms of performance.

Qualcomm acquired Nuvia, founded by a former Apple chip architect, in a renewed effort to make custom computing cores that differ from the standard Arm designs used by competitors such as MediaTek.

One of Qualcomm's primary goals with Nuvia's technology was to challenge Intel and AMD. Qualcomm acquired Nuvia shortly after Apple abandoned Intel and began using its own chips (also based on Arm technology) in its Mac laptops.

Apple's move revived Mac sales, and Qualcomm CEO Cristiano Amon told Reuters he wanted to use Nuvia's Arm-based design to do the same thing for the Windows-based laptop market. royalties. But under Nuvia's deal with Arm, the royalties could be lower.

"Qualcomm's growth opportunities in the PC (and potentially server) business are entirely dependent on the design of Nuvia, which is Arm's primary means of entry into Windows PCs," he said.

The deal is seen as a way for Qualcomm to reduce its dependence on Arm. In the past, Qualcomm has used computing cores licensed directly from Arm for most of its chips, while Nuvia's cores use Arm's underlying architecture, but are custom designs.
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