Wednesday, October 23rd 2024
Arm Plans to Cancel Qualcomm's License, Issues 60-Day Notice
According to Bloomberg, Arm Holding PLC, the holding company behind the Arm instruction set and Arm chip designs, just issued a 60-day notice period of license retirement to Qualcomm, its long-time partner. The UK-based ISA provider has notified Qualcomm that it will cancel the Arm ISA architectural license agreement after the contract-mandated 60-day notice. The issues between the two arose in 2022, just a year after Qualcomm acquired Nuvia and its IP. Arm filed a lawsuit claiming that the reason was "Qualcomm attempted to transfer Nuvia licenses without Arm's consent, which is a standard restriction under Arm's license agreements." To transfer Nuvia core licensing, Qualcomm would need to ask Arm first and create a new licensing deal.
The licensing reworking came just in time when Qualcomm experienced its biggest expansion. The new Snapdragon 8 Elite is being used in the mobile sector, the Snapdragon X Elite/Plus is being used in Copilot+ PCs, and the automotive sector is also getting the new Snapdragon Cockpit/Ride Elite chipsets. Most of that is centered around Nuvia Oryon core IP, a high-performance, low-power design. Arm's representatives declined to comment on this move for Bloomberg, while a Qualcomm spokesman noted that the British company was trying to "strong-arm a longtime partner."
Sources:
Bloomberg, via VideoCardz
The licensing reworking came just in time when Qualcomm experienced its biggest expansion. The new Snapdragon 8 Elite is being used in the mobile sector, the Snapdragon X Elite/Plus is being used in Copilot+ PCs, and the automotive sector is also getting the new Snapdragon Cockpit/Ride Elite chipsets. Most of that is centered around Nuvia Oryon core IP, a high-performance, low-power design. Arm's representatives declined to comment on this move for Bloomberg, while a Qualcomm spokesman noted that the British company was trying to "strong-arm a longtime partner."
QualcommThis is more of the same from Arm - more unfounded threats designed to strongarm a longtime partner, interfere with our performance-leading CPUs, and increase royalty rates regardless of the broad rights under our architecture license. With a trial fast approaching in December, Arm's desperate ploy appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless. We are confident that Qualcomm's rights under its agreement with Arm will be affirmed. Arm's anticompetitive conduct will not be tolerated.
42 Comments on Arm Plans to Cancel Qualcomm's License, Issues 60-Day Notice
#popcorn
I think its a too big to fail affair and we'll soon realize temporary licensing tied to hardware that people rely on is a bad thing.
a) Qualcomm had an architectural development license before buying nuvia... so what if they cancel the nuvia license, technically Qualcomm's license shouldn't be impacted - I don't think any court will agree with Qualcomm's specific license being revoked and I'd be surprised if their existing license had any clauses about buying out a competitor, although nuvia's existing being nulled I could see being accepted.
b) Even if the products derived from nuvia's license are tied to being produced by an ARM architectural licensee, with respect to (a) what's the big deal really... they'll still be getting their payments in. Maybe a judge might agree, but I don't see ARM being able to defend a position of somehow 'being at a material loss'.
c) At a time of growing interest, development and productionisation of RISC-V hardware, should you really be looking to p-off essentially one of your biggest customers.
d) If they get a judgement in their favour and ultimately Qualcomm have to pay X% extra per Snapdragon Elite product shipped as an end result, as per (c), do they really think that's going to be a benefit long-term?
I'm guessing Softbank are trying to get back some of the money they didn't get from selling ARM to Nvidia - investment company thinking striking again.
arm (is that the current proper capitalisation?) also has more strange ideas, like demanding license payments directly from companies who buy arm-based chips.
Unless there is some sort of deferred agreement with the chip maker and device maker on who pays. What's next, charging Google extra if an Android builds adds support for a new ISA function?...
And we do know that Qualcomm is no saint, so we shouldn't just blame Arm.
But besides personal likes, I'm pretty sure that Arm legal dept would have advised their superiors is the case has legitimacy or not before proceeding.
The custom cores for Snapdradon X Elite and 8 Elite are all ARMv9.
That is what I heard, though IDK about that. ARM seems to make a distinction in IP developed under Nuvia or Qualcomm.
This has been going on for years at this point
www.semianalysis.com/p/arms-nuclear-option-qualcomm-must Supposedly the Nuvia license contract is more favorable to licensee because it was for Server chips, which is a more limited market in addition to one that ARM doesn't have much market share in.
That might be why ARM went into survival mode as it would get a fraction of a more favorable contract to them and much less than if they managed to license the cores. It's also a time of growing interest in custom ARM cores too.
ARM probably does have a case as Qualcomm did the exact same thing in the past.
Yeah, the licenses are non-transferable, but unless the license specifically states that the resulting products must be covered under that specific license - and crucially can't be 'reworked' under another license by another licensee - I'm not so sure it's that black and white.
At the end of the day, Nuvia designed some stuff under an applicable license - Qualcomm bought that as an asset - Qualcomm worked on that asset using it's own license that permits it to work on such type of product within the scope of that license.
It all comes down to if there is some measure of enforcement over the product that comes out of that Nuvia license - I expect that there was some royalty terms, and maybe they are different for Nuvia vs Qualcomm.... in which case I can see a judge just pushing them towards a settlement based on that difference. I can't believe that they would be that stupid... I mean I believe they could be.... not sure that they would be so obviously though...
Also, speculation on who/what/where/when etc is a waste of time, unless you happen to have a complete copy of the signed agreements to use as a basis of your assumptions/opinions ect.... :D
Qualcomm seeks an injunction over the cancellation of the contract, claiming the term are unfair. Qualcomm continues to produce while this is tied-up in court, functionally still paying out at the old licensing terms. ARM gets the stream of money from new sales, and it's used to pay the lawyers to fight this out in court for what likely will be years...and in 2030 there's a decision that whomever wins we all lose because the cost of this will eventually be leveraged onto consumers because the bickering and squabbling over IP this entangled will be a huge knot to untie.
I see only an eventual increase in price for consumers as the outcome, whether Qualcomm or ARM wins. That's...not really new at this point. It pains me to say that, but with how much development money is at stake here nobody is going to forego any petty squabbles that have any sort of monetary potential.
Say hello to our RISC-V overlords.
www.macrumors.com/2023/11/29/apple-pays-less-than-30-cents-per-chip/
Were Nuvia's designs licensed to ARM for servers, so therefore how much % of the design can be used for non-server?
Or, was Nuvia's products in general licensed to ARM for servers,... therefore the same engineers and product can be used completely by another company?
No doubt Apple said to ARM. "Hey those Nuvia engineers left us, now they're giving away our design to Qualcomm. Stop them."