ARM Holdings' stock experienced a sharp plummet of 5.09% in pre-market trading on Monday, following a legal setback in its ongoing dispute with semiconductor giant Qualcomm over licensing terms for ARM's chip architecture.
In a closely watched trial at a federal court in Delaware, a jury ruled that Qualcomm did not violate its licensing agreement with ARM when it integrated technology from the acquired startup Nuvia into its own chips. This decision clears a significant hurdle for Qualcomm, allowing it to continue selling chips using Nuvia's designs without additional licensing fees.
However, the jury was unable to reach a unanimous verdict on whether Nuvia itself had breached ARM's licensing terms prior to its acquisition by Qualcomm. ARM expressed disappointment with the partial outcome and vowed to seek a new trial to resolve this outstanding issue, highlighting the ongoing uncertainty surrounding the case.
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