Qualcomm Inc (NASDAQ:QCOM) gains significant leverage in future litigation after securing a critical legal win against Arm Holdings Plc (NASDAQ:ARM), according to JPMorgan analyst Samik Chatterjee.
What The Court Said: A Delaware District Court ruled that Qualcomm’s acquisition of Nuvia did not violate Arm’s Architecture License Agreement (ALA), securing the designs under Qualcomm’s license.
While the verdict didn’t resolve all questions about Nuvia’s prior actions, it eliminates fears of canceled licenses or disruptive financial repercussions.
It also dismisses major uncertainties surrounding the license agreement with Arm and allows San Diego-based Qualcomm to continue selling and innovating on Arm’s chips without interruption.
Still, Chatterjee warns of potential future litigation from Arm and hints at possible renegotiations over financial terms for ALA extensions beyond 2033. Qualcomm has the option to renew the license for an additional five years in 2028 for just $1 million annually—a …Full story available on Benzinga.com
Qualcomm Scores Big In Arm Lawsuit: Will Bearish Trends Back Down?
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