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."
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.
Sources: Bloomberg, via VideoCardz
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42 Comments on Arm Plans to Cancel Qualcomm's License, Issues 60-Day Notice

#26
Vincero
mikesgI think the issue is:
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?
Well, I assume you mean licensed 'by' ARM, not 'to' ARM - ARM are the IP holder and have no practical interest (apart from royalties) in the finished products.

The problem there is does a license to use something to design a product / asset mean that the licensor has additional control over that product/asset in terms of future development and how it's used...? Without the contracts being made public that is hard to answer.
I'm not sure how enforcable the use of a general purpose CPU core being restricted to certain market segments actually is - if it's a soft limitation based on royalty payments, etc., then again I expect this to be settled.
To complicate that even more, the designs are (supposedly / by all accounts) NOT using ARM standard customer IP (i.e. not using Cortex-A/X) cores - the CPU core design is Nuvia/Qualcomm customised - so what say can ARM really have there...?

I sense there is likely an 'intent' in the contracts for ARM to maybe try to enforce this approach but I suspect there is enough ambiguity in the contract itself (i.e. this specific type of scenario regarding taking over someone else's IP and assimilating it) that Qualcomm think they can defend their position.

The summary version of ARM's claim is "that Qualcomm violated the license agreement by using designs from Nuvia without Arm's approval" - we have no idea what rights of ownership ARM has on those designs (which are legitimately now Qualcomm assets in terms of whatever ownership Nuvia had). If those designs utilise say some amount of the ARM Cortex IP blocks directly, then ARM possibly have a credible case in terms of some right of approval / ownership.
mikesgNo doubt Apple said to ARM. "Hey those Nuvia engineers left us, now they're giving away our design to Qualcomm. Stop them."
Surely that's Apple's problem and if true they could pursue effectively themselves - and get the payout directly from any judgement rather than some latent gain.
Posted on Reply
#27
ThomasK
Great move from ARM.

We should have less companies like Qualcomm.
Posted on Reply
#28
remixedcat
could intel or AMD have a mole at ARM??
Posted on Reply
#29
ScaLibBDP
This is clearly an attempt to "blackmail" Qualcomm.

I wish Qualcomm consider an option of porting as many as possible ARM-based IPs to RISC-V.
Posted on Reply
#30
SOAREVERSOR
ScaLibBDPThis is clearly an attempt to "blackmail" Qualcomm.

I wish Qualcomm consider an option of porting as many as possible ARM-based IPs to RISC-V.
This is standard legal fuckery.
Posted on Reply
#31
Wirko
VinceroTo complicate that even more, the designs are (supposedly / by all accounts) NOT using ARM standard customer IP (i.e. not using Cortex-A/X) cores - the CPU core design is Nuvia/Qualcomm customised - so what say can ARM really have there...?
A lot. Arm sells "technology licenses" for individual core designs such as Cortex-X, and "architecture licenses" for instruction sets, for example, ARMv9. The latter are supposed to be by far the most expensive. Maybe because they are sold for a fixed sum, without royalties? I don't know.
Posted on Reply
#32
unwind-protect
xorbeI always wondered why hardware companies would hang their existence on ARM's approval. Even if it's "30 cents per chip" somewhere there was a very large payment upfront initially.
It is not today's fees that are the issue. It is the uncertainty of what payments might be required in the future.

Even worse, future contracts on tech like this might restrict your business in some way.

I'm tell you, this affair means the end of a possible ARM dominance.
Posted on Reply
#33
SOAREVERSOR
unwind-protectIt is not today's fees that are the issue. It is the uncertainty of what payments might be required in the future.

Even worse, future contracts on tech like this might restrict your business in some way.

I'm tell you, this affair means the end of a possible ARM dominance.
On to RISC-V! x86 sucks, and if ARM is having trouble RISC-V is up next for a chance.
Posted on Reply
#34
trsttte
lemonadesodaLooking forward to the car-owner chatter, wondering if their cars, or critical functions thereof, will be remotely turned off. Remember, so much of a modern car you do not own, you only license to use.
I don't understand the equivalency you're trying to draw. Even if Qualcomm looses, all the SoCs on the market with the infringing IP will continue to function just like before, Qualcomm will "simply" need to pay damages to ARM for each and every single one of them.

In terms of licensing things on a car, there are plans and management type morons trying to introduce such things but for now it only exists on very few things that can be justfied (i.e. live services). There are a miriad that are sold as options but can be enabled with a simple code variable but that always happened and that's it, it's active and done, no one will revoke it later.
VinceroGTFO!!!
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?...
They were proposing that licensing model. I don't know if it went through but they wanted to receive a royaltee from say Google, Samsung, Motorola, etc. for each phone sold using a product that includes ARM licenses.

Basically Softbank trying to turn ARM into a money making machine after the nvidia sale went bust.
R0H1TQC sue anyone & everyone they could over modems, including Intel & Apple IIRC?
To a point that's normal and Apple is notorious for being very dishonest and working with suppliers only until it's able to replicate the IP.
ScaLibBDPI wish Qualcomm consider an option of porting as many as possible ARM-based IPs to RISC-V.
They'd need to convice everyone else to make their software work on RISC-V and the performance is not really there yet for general purpose computing. But this behaviour from ARM is just another nail on it's coffin, everyone else is watching just like they were when the nvidia aquisition was looming.
Posted on Reply
#35
Assimilator
Arm's contract with licensees will quite explicitly cover the case where one licensee purchases another, and almost certainly the required action there is "Arm must be notified and have the option to renegotiate the license terms." Qualcomm didn't do that with its 2021 acquisition of NUVIA because they thought they could save a buck, Arm has evidently been trying to get QC to comply with its responsibilities for 3+ years now, and it seems they've finally lost patience with QC's shit and are now making that very publicly known. Qualcomm literally has no option here, they either do what they should've done when they originally bought NUVIA or they don't get to sell and develop CPUs anymore. Stupid corporate bullshit just to try to save a license fee that is ultimately insignificant to the company's bottom line, and I guarantee that the legal wrangling will cost QC more in the end. I hate MBAs.

And for everyone saying that Arm is evil for trying to impose a per-CPU-sold license cost, being screwed over by licensees like QC is likely a big drive towards that, AKA "if you're gonna stiff us we're gonna stiff you".
Posted on Reply
#36
GenericUsername2001
z1n0xIt seems to me that SoftBank is still mad at Qualcomm because they were one of the main blockers of the ARM-Nvidia deal. Probably Qualcomm would have to open the purse. MediaTek is loving this.
To add to that, the CEO of ARM, Rene Haas, is a former Nvidia employee. Plus there are all sorts of rumors floating around about MediaTek & Nvidia collaborating on an SoC, so both could benefit highly from this.
Posted on Reply
#37
Neo_Morpheus
ScaLibBDPThis is clearly an attempt to "blackmail" Qualcomm.

I wish Qualcomm consider an option of porting as many as possible ARM-based IPs to RISC-V.
Have you read about what a "nice" company is Qualcomm with their customers?
They have abused everyone with their modems patents.

About RISC-V, yeah..give it a decade to be anywhere near what ARM is today.
hsewthe aggressiveness of ARM will surely put other chipmakers on notice and likely cause a reimagining of their own long-term design strategies
Arm lives and dies by their IP and licensing deals, so what should they do when one of their licensees tries to play stupid and break the contract?
R0H1TApple pays less than 30 cents on a chip they make
In case that many are not aware, Apple was a founding member of Arm and only they know the deal they have, which is clearly beyond the fact of Apple owning and selling their stakes at the company.

I find it really funny how many are blindly defending poor Qualcomm against the abusive and evil Arm.
Posted on Reply
#38
xorbe
I would love for RISC-V to displace ARM even if we took a performance hit for a while. If it gains traction, I'm sure some bogus IP lawsuits will materialize.
Posted on Reply
#39
unwind-protect
Neo_MorpheusHave you read about what a "nice" company is Qualcomm with their customers?
They have abused everyone with their modems patents.
This. It really couldn't have happened to nicer guys.
Posted on Reply
#40
Dwarden
Qualcomm moving on RISC V en mass ?
Posted on Reply
#41
hsew
DwardenQualcomm moving on RISC V en mass ?
Interesting that Qualcomm and nVidia (and others too probably) have, within the past week, published statements bragging about the millions and billions of RISC-V cores they’ve sold.
Posted on Reply
#42
lemonadesoda
trsttteIn terms of licensing things on a car, there are plans and management type morons trying to introduce such things but for now it only exists on very few things that can be justfied (i.e. live services). There are a miriad that are sold as options but can be enabled with a simple code variable but that always happened and that's it, it's active and done, no one will revoke it later.
No - it is already being introduced - licensing pay-per-billing cycle for features, not just live services. For example. BMW indicator lights ;)
Posted on Reply
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