Updated: October 23, 2024 (4:33 PM ET): Qualcomm and Arm both released official statements. Android permissions Regarding license suspension. Mr. Arm’s comments are as follows:
arm: Given Qualcomm’s repeated material violations of Arm’s license agreement, Arm is left with no choice but to take formal action to require Qualcomm to correct its violations or face termination of the agreement. This is necessary to protect the unparalleled ecosystem that Arm and its highly regarded partners have built for over 30 years. Mr. Arm is fully prepared for his trial in December and remains confident that the court will rule in his favor.
Qualcomm is understandably not too happy about Arm’s shocking move here, and isn’t mincing words about the nature of this move.
This is also true from ARM, with rationale aimed at strengthening our long-time partner, interfering with our performance-leading CPUs, and increasing royalty rates despite the broader rights under our architecture license. threats are increasing.
in a statement to Android permissionsA Qualcomm spokesperson said the company will not take this case quietly and looks forward to asserting its rights in court.
With the trial looming in December, Arm’s desperate ploy appears to be an attempt to obstruct the legal process, and the dismissal claims are completely baseless. We believe that Qualcomm’s rights under the Arm agreement will be affirmed. Arm’s anti-competitive behavior will not be tolerated.
We will be keeping an eye on further developments from both companies in the coming weeks, as the outcome of these lawsuits will reflect a lot.
Original article, October 22, 2024 (11:31 PM ET): In an important update, Arm has decided to terminate its licensing agreement with Qualcomm. The move could deal a blow to the Snapdragon chip, which is the heart of Android phones.
The growing legal dispute between the two companies threatens to disrupt Qualcomm’s business and the broader smartphone industry. Snapdragon processors power most Android smartphones, and Qualcomm generates about $39 billion in revenue from this business. If Arm revokes Qualcomm’s license, Qualcomm could face legal action for suspension of sales and damages, leaving consumers in a difficult position regarding the availability of Snapdragon-powered devices. It could also stall innovation in Qualcomm’s future chips, leading to soaring prices and shortages of Android phones.
Arm filed a lawsuit against Qualcomm in 2022 for violating the terms of its agreement after acquiring Nuvia, another Arm licensee. The acquisition is important for Qualcomm’s plans to integrate Nuvia’s technology into future laptops and improve Snapdragon chips for smartphones.
Arm’s decision to revoke Qualcomm’s license also reflects a strategic shift in its business model under new leadership. Instead of providing instruction sets to companies like Qualcomm, Arm now provides complete chip designs. This will make Arm a direct rival to Qualcomm, complicating the previously friendly relationship between the two companies.
