According to Zhitong Finance, after both parties' lawyers completed their closing statements, a licensing dispute between Arm Holdings (ARM.US) and Qualcomm (QCOM.US) was submitted to the jury on Thursday. The jury in the federal court of Delaware, USA, is considering whether Qualcomm or Nuvia violated the licensing agreement with Arm, which is based in the United Kingdom and provides intellectual property to both companies. Qualcomm acquired the startup Nuvia for $1.4 billion in 2021. The jury held a three-and-a-half-hour meeting but did not reach a verdict and will continue deliberations on Friday morning local time.

This intellectual property case pits two of the world's most influential chip manufacturers against each other and could disrupt the entire Technology Industry. The dispute has garnered attention from the chip industry. Many of the largest Technology companies around the world rely on technology licensed from Arm and Qualcomm to manufacture products, so the week-long trial could have far-reaching implications.

This case could also disrupt Qualcomm's plans to enter the personal computer market, as Qualcomm's chips are intended to compete with Apple (AAPL.US) and Intel (INTC.US) in terms of speed. In closing statements, Qualcomm's legal team urged the eight-member jury to rule that Qualcomm did not violate its contract with Arm and warned that the UK chip design company is using its lawsuit to try to exert influence over Smart Phone chip manufacturers.

Qualcomm attorney Karen Dunn told jurors that Arm wants to force Qualcomm to destroy its recently launched high-speed chips for AI laptops and then threatens similar licensing partners that manufacture phone chips based on its technology.

Arm's attorney Daralyn Durie warned the jury that such allegations distract from the issue they must decide: whether Qualcomm and its 2021-acquired startup Nuvia violated the licensing agreement.

In 2022, Arm stated that Nuvia and Qualcomm violated Arm's Nuvia technology contract, prompting the UK company to terminate the agreement, which required Nuvia to destroy technologies built based on that technology. Qualcomm argued that the controversial Nuvia chip designs were developed independently of Arm. Arm's lawyer Durie stated that if Qualcomm does not want to be forced to destroy its microprocessors, it should comply with its licensing terms.

Dunn stated, "Deciding to use all of these things without permission is their choice, and now they say it was a bad decision, they are not happy. But that was their decision, not ours."

The jury held a three and a half hour meeting but did not reach a verdict, and will continue deliberations on Friday morning local time. In the trial that began on Monday, Arm attempted to describe Qualcomm's actions as the first contempt of the standard contract terms that the United Kingdom company has successfully utilized for decades, which would overturn its Business model.

Arm's lawyers stated that for Qualcomm, using Nuvia's designs while claiming the work was done at Qualcomm could save up to 1.4 billion dollars annually, resulting in cheaper licensing agreements.

Qualcomm claimed that Arm misled it into disbanding its own design team, increasing its reliance on Arm technology, and then attempted to raise royalties by 400%. It also pointed out that internal documents from Arm show that Arm was plotting to enter the chip manufacturing business while undermining Qualcomm. Arm CEO Rene Haas denied these allegations.