Qualcomm wins $2 legal decision against fellow tech giant Arm, and that's not a typo

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Editorial callout

"Qualcomm gets $2 from Arm in the Delaware jury's decision, part of a yearslong licensing dispute between the two."

Yahoo Finance puts their market caps at $210 billion and $243 billion respectively.

Qualcomm alleges bad faith action by Arm over tech licensed by the former company from the latter.

Qualcomm won $1 on its allegations of Arm withholding contractually obligated support on the licensed tech, and $1 on allegations Arm interfered with a deal between Qualcomm and Meta.

Still undecided: Does Qualcomm get a 5-year pause on licensing payments to Arm, which could total in the billions of dollars?

Reuters reported on the mystifying reward, which makes much more sense in the context of a broader legal battle between Qualcomm and Arm. The two companies are each behind some of the most widely-used processors in the world: Qualcomm's Snapdragon CPUs can be found in most non-Apple smartphones. Arm's titular architecture, meanwhile, is the basis of the Snapdragon CPU, and there are rumblings the future of desktop computing belongs to Arm and not the x86 architecture we've defaulted to for so long.

The Delaware jury found that Arm breached a licensing agreement with Qualcomm, failing to provide patches and support for designs Qualcomm had licensed. The jury also ruled in favor of Qualcomm's allegation that Arm strategically leaked information to Bloomberg News that delayed a deal between Qualcomm and Meta in 2024. The jury sided with Arm over Qualcomm on five other counts.

The big prize for Qualcomm would be proving Arm acted in bad faith after licensing its technology out, activating a five-year freeze on royalty payments specified in the companies' original agreement⁠—that could be worth billions of dollars.

Both sides claimed victory following the $2 decision, with Qualcomm pointing to the two claims it won, and Arm highlighting the five that went its way.