During Qualcomm’s fiscal first quarter 2025 earnings call, CEO Cristiano Amon reassured stakeholders that Arm does not plan to cancel the Qualcomm Architecture License Agreement. This statement follows a recent court victory for Qualcomm against Arm concerning the proprietary core designs developed by Nuvia. The conflict began when Qualcomm acquired Nuvia and its CPU technology to enhance the Oryon CPUs within Snapdragon processors. Arm contested the move, claiming that Nuvia’s designs couldn’t be transferred without its consent, according to The Register.

The dispute escalated into a significant legal confrontation, with Arm revoking Qualcomm’s licensing rights and demanding the destruction of Nuvia’s designs. Arm alleged it was losing out on $50 million in annual royalties because Qualcomm failed to renegotiate the licensing terms post-acquisition. Qualcomm countered, asserting that its Oryon CPU cores incorporate less than 1% of original Arm technology, branding them largely bespoke.

Although Qualcomm emerged victorious from the lawsuit, Arm continues to seek additional legal clarity regarding the agreement specifics, particularly since the jury did not reach a decision on whether Nuvia violated its contractual obligations with Arm. Consequently, there remains a possibility that Arm might pursue a retrial on this specific point.

Despite losing the lawsuit, Arm’s Chief Financial Officer, Jason Child, stated that the outcome is unlikely to impact the company’s financial projections. Child explained that Arm had already anticipated the possibility of losing the case and had planned for continued royalty payments from Qualcomm under existing agreements. “Our main motive for the lawsuit was to protect our intellectual property, which is crucial. However, financially, we were prepared for this scenario and expect royalty payments to continue at their current rates,” Child elaborated.

Even though Arm did not succeed in compelling Qualcomm to renegotiate its contracts, it still profits from Qualcomm’s achievements. In its most recent quarterly financial report, Qualcomm announced an 18% increase in revenue year-over-year, which translated into a 15% increase in net income. Additionally, Qualcomm reported capturing 10% of the U.S. market for Windows PCs priced at $800 or higher. Similarly, Arm’s revenue rose by 18% over the same period, highlighting the interconnected successes of the two firms.