R0H1TYou must've missed the thousands of other similar lawsuits like that where risk(of litigation) vs reward(profits?) is usually the deciding factor. Like Intel bribing OEM's, Nvidia with their woodscrew-gate or memory-gate(GTX 970) & Apple's antenna-gate, bend-gate, battery-gate among others? If QC feels they'll have to pay less in fines than what they'll make off this acquisition then it doesn't really matter whether it was illegal or not, this would hardly be the first time a billion dollar corporation has done "shady" stuff ~ it's actually what they're known for!

AleksandarKThe world of semiconductor IP licensing is complex by nature. If you use a company's IP, you must agree to its licensing terms. Today, it is precisely those terms that are being breached in the event of ARM Ltd. filing a lawsuit against one of its biggest customers, Qualcomm. When Qualcomm acquired Nuvia Inc., regarded as one of the best CPU design teams in the industry, it transferred ARM-Nuvia license agreements as its own. It continued the development of ARM IP under Qualcomm's name. This is a standard restriction, as ARM's licensing prohibits these sorts of IP transfers among companies to protect the IP.

As the UK-headquartered company reports: "Because Qualcomm attempted to transfer Nuvia licenses without ARM's consent, which is a standard restriction under ARM's license agreements, Nuvia's licenses terminated in March 2022. Before and after that date, ARM made multiple good faith efforts to seek a resolution. In contrast, Qualcomm has breached the terms of the ARM license agreement by continuing development under the terminated licenses. ARM was left with no choice other than to bring this claim against Qualcomm and Nuvia to protect our IP, our business, and to ensure customers are able to access valid ARM-based products."



Interestingly, ARM is now " seeking specific performance of the contractual obligation to destroy certain Nuvia designs, an injunction against trademark infringement as well as fair compensation for the trademark infringement." With this case now reaching the United States District Court for the District of Delaware, it is a matter of time before we see more information about the case. The two could settle; however, ARM has pointed out that it tried it off-court with Qualcomm, and it didn't work.

maxflyNope, haven't missed any of it. If you read the article, there's a specific portion that mentions the destruction of that which is supposed to be worth gambling over, according to you. If they lose, their investment is lost along with the IP. How exactly does this scenario look like a win for Qualcomm if they drop the litigation?

Arm is now " seeking specific performance of the contractual obligation to destroy certain Nuvia designs, an injunction against trademark infringement as well as fair compensation for the trademark infringement."

If they are forced to destroy the ip... Poof.

The_EnigmaWe all know ARM is hurting financially and trying to sell themselves.

The_EnigmaNow that the sale fell through

The_Enigmathey could extort for a big cash grab to satisfy their financial situation

R0H1TQC hasn't done a custom core in over 5 years. Unless that license was basically free they stopped paying for it/relinquished it half a decade back. Any way you look at it ARM has the upper hand because ultimately they are the final boss/IP owner.


No we don't.

They got a "free" billion dollars.

Among major chipmakers or IP owners ARM has by far the most stellar record, I've never seen them in the headlines wrt patents issues or licensing. QC on the other hand, they'd sue your Grandma for using that old Crickety CDMA handset :laugh:

The_EnigmaAnd the company who actually owns ARM has been posting big losses for quite a while now, in fact they just recently posted another quarterly loss of 22 billion.

The_EnigmaUm... Qualcomm has customized Kryo cores in the Snapdragon 8 Gen 1 and its + variant.

And the company who actually owns ARM has been posting big losses for quite a while now, in fact they just recently posted another quarterly loss of 22 billion.

Nvidia will also most likely be trying to get most of that 1 billion back, as the deal fell through from not getting regulatory approval and not because Nvidia simply decided not to move forward. Contract break up payment clauses can get a bit murky too when the breakup is from regulatory oversight. Either way, 1 billion gained is nothing when there is a quarterly loss of 22 billion already after that.

• 2021 total revenues were up 35% to $2.7Bn with strong growth in both royalty and non-royalty revenue.

mahirzukic2I think you have no idea what you are talking about.

As per these two links:
www.arm.com/company/news/2022/05/arm-delivers-record-revenues-and-record-profits-in-fy21
group.softbank/system/files/pdf/ir/financials/annual_reports/annual-report_fy2021_01_en.pdf

As per the first link

So during the whole last year (2021) they had a revenue of 2.1 billion USD, not quarterly loss of 21 billions.
How big this company do you think is? ARM's total market capitalisation is about 24 billion US, so clearly (along the financial reports obviously) they can't be losing 22 billion US in a quarter. They'd be gone in just shy over one quarter, yet you haven't heard anything about their demise.

The_Enigmawww.wsj.com/articles/softbank-reports-23-billion-quarterly-loss-as-tech-downturn-hits-11659940047

SoftBank

Global tech investor SoftBank Group Corp. reported a record quarterly loss of more than $23 billion Monday after an investment spree that Chief Executive Masayoshi Son described as delirious turned sour.
The results for the three months through June brought a mea culpa from Mr. Son, who sprayed unprecedented levels of funding on startups across the world over the past half-decade, particularly just as prices crested last year.

lexluthermiesterIt's ARM, not Arm.

Additionally, this article is written in a way that seems to assume Qualcomm's guilt without any regard for factual examination of information. This is not only poor reporting but it does a dis-service to the reader as it lacks objectivity and impartiality. ARM could very well be in the wrong in it's assertions and Qualcomm doing exactly what it's allowed to do. It is not for the press to decide, that's the purpose of a court, which is why they exist.