Arm Holdings Plc (NASDAQ:ARM) shares are moving lower on Monday after a U.S. federal court reportedly found that QAULCOMM Incorporated (NASDAQ:QCOM) did not breach Nuvia's license agreement with the company, Bloomberg reported on Friday.
The Details: The jury determined that Qualcomm's chips are properly licensed under its agreement with Arm and concluded that Qualcomm did not violate the terms of its agreement by incorporating technology into its chips without paying a higher licensing rate. However, the jury could not unanimously determine if Nuvia breached its license agreement.
This verdict follows a legal battle in which Arm argued that Qualcomm and its subsidiary, Nuvia, required new agreements to continue using the company's technology. Qualcomm, on the other hand, maintained that it held a broad, separate license for Arm's innovations that covered its operations.
Qualcomm relies on its licensing agreement with Arm to integrate the company's technology into its chips. For instance, its partnership with major companies like Samsung relies on this technology to power their devices.
Since the jury could not reach a unanimous verdict on whether Nuvia breached its license agreement, Arm expressed its interest in filing for a retrial and stated that it was disappointed that the jury did not reach a consensus on the claims.
Qualcomm said, "The jury has vindicated Qualcomm's right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm's contract with Arm."
ARM Price Action: At the time of publication, Arm stock is trading 2.97% lower at $128.23, according to data from Benzinga Pro.
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