Qualcomm has received a lawsuit from ARM Ltd., a company owned by Softbank Group Corp. The two companies are in a legal dispute over licensing fees. Arm wants to make up for lost revenue by obtaining higher licensing fees. Previously, it tried to convince Qualcomm to increase licensing fees privately, but Qualcomm has rejected this request. Now, the two companies are in court, arguing that their licenses violate the law.
The lawsuit alleges that Qualcomm violated Arm’s intellectual property licenses to develop chip architecture. ARM believes that the licenses Qualcomm received from Nuvia were improperly granted. In addition, Qualcomm’s failure to obtain permission to use Nuvia’s CPU core designs is a violation of the licensing agreement.