According to Bloomberg, a 60-day notice of termination was also served.
Back in the fall of 2022, we reported that ARM sued Qualcomm, to which the latter company responded with a counterclaim, and later came forward with the accusation that ARM was preparing to abandon its business model.
A Bloomberg according to his recent report, events are slowly escalating, as ARM has sent a 60-day official termination notice to Qualcomm, with which the latter company would lose the right to design and market chips using ARM technology.
The case can actually be traced back to the start of the legal dispute in 2022, when ARM accused Qualcomm of not renegotiating the contract terms when they acquired the design company Nuvia. Qualcomm responded to this by saying that their current contract with ARM also covers the activities of the company they purchased.
Although it is not specifically stated, it is roughly probable that ARM wants to receive higher royalties for Nuvia’s designs that went to Qualcomm, and the termination notice may also be primarily useful to force Qualcomm to settle before or during the court hearing. For the time being, however, neither party seems to be willing to give in, so the dispute may be settled after a long series of negotiations.
However, it should be noted that both companies need each other, as Qualcomm is one of ARM’s biggest partners, while Qualcomm cannot sell its chips without ARM’s licenses. Ergo, this is a discussion where it is practically not in the interest of either company to terminate the relationship with the other, since financially both would come out of it negatively.
Source: prohardver.hu
