Arm sues Qualcomm, aiming to unwind Qualcomm's $1.4 bln ...

Qualcomm bought Nuvia, founded by former Apple chip architects, to reboot its efforts to make custom computing cores that would be different ... SkiptomaincontentQualcommlogoisduringMunichAutoShow,IAAMobility2021inMunich,Germany,September8,2021.REUTERS/WolfgangRattayRegisternowforFREEunlimitedaccesstoReuters.comRegisterSANFRANCISCO,Aug31(Reuters)-ChiptechnologyfirmArmLtd,whichisownedbySoftbankGroupCorp(9984.T),onWednesdaysaidithadsuedQualcommInc(QCOM.O)andQualcomm'srecentlyacquiredchipdesignfirmNuviaIncforbreachoflicenseagreementsandtrademarkinfringement.ArmisseekinganinjunctionthatwouldrequireQualcommtodestroydesignsdevelopedunderNuvia’slicenseagreementswithArm.ArmallegeditsapprovalwasneededbeforethesecouldbetransferredtoQualcomm.Qualcomm,whichacquiredNuviafor$1.4billionlastyear,saidArmhasnorighttointerferewithQualcomm’sorNUVIA'sinnovations."Arm’scomplaintignoresthefactthatQualcommhasbroad,well-establishedlicenserightscoveringitscustom-designedCPU’s,andweareconfidentthoserightswillbeaffirmed,”saidAnnChaplin,GeneralCounselofQualcomminastatement.RegisternowforFREEunlimitedaccesstoReuters.comRegisterIfArm'seffortissuccessfulitwouldessentiallyunwindoneofQualcomm'sbiggeststrategicacquisitionsinrecentyears.readmoreThelawsuitrepresentsamajorbreakbetweenQualcommandArm,oneofQualcomm'smostimportanttechnologypartners.QualcommhasreliedonArmsinceitstoppeddesigningitsowncustomcomputingcores.Butinrecentyears,thecompanieshavebeenatodds.SomeinsideQualcommhaveprivatelycomplainedthatArm’spaceofinnovationisslackening,causingQualcomm’schipstofallbehindApple’sprocessorsinperformance.QualcommboughtNuvia,foundedbyformerApplechiparchitects,torebootitseffortstomakecustomcomputingcoresthatwouldbedifferentfromstandardArmdesignsusedbyrivalssuchasTaiwanchipdesignerMediaTekInc.(2454.TW).OneofQualcomm'sfirstgoalswithNuvia'stechnologyistochallengeIntelCorp(INTC.O)andAdvancedMicroDevicesInc(AMD.O).inthePCandlaptopmarketswhichtheynowdominate.QualcommacquiredNuviashortlyafterAppleditchedInteltobeginusingitsownchips,whicharealsobasedonArmtechnology,initsMaclaptops.Apple'smovereinvigoratedMacsales,andQualcommCEOCristianoAmontoldReutershewantedtouseNuvia'sArm-baseddesignstodothesamethingfortheWindows-basedlaptopmarket.ArmwouldstillmakemoremoneybecauseQualcommpaysitaroyaltyoneachchipitsellsthatusesitstechnology.ButitispossibletheroyaltyratescouldbelowerunderNuvia'sdealwithArm.Thearrangementhighlightshowmuchthetwocompaniesdependoneachother,saidBobO'DonnellofTECHnalysisResearch"Qualcomm’sopportunitymovingforwardwiththePC(andpotentiallyserver)businessisutterlydependentonNuviadesigns,andNuviaistheprimarymeansbywhichArmcangetintoWindowsPCs.SothecompaniesreallyneedtopartnerwelliftheywanttohaveameaningfulimpactonthePCmarket,"hesaid.ThedealwasseenasawayforQualcommtolessenitsrelianceonArm.Inthepast,mostofQualcomm'schipshaveusedcomputingcoreslicenseddirectlyfromArm,whileNuvia'scoresuseArm'sunderlyingarchitecturebutarecustomdesigns.ForQualcomm,usingmorecustomcoredesigns-amovethatApplehasalsomade-couldlowersomelicensingcoststoArmintheshorttermandmakeiteasiertomovetoarivalarchitectureinthelongerterm.AsourceclosetoArmsaidthatitslicenseswithQualcommwerenotindisputeandthatonlytechnologydevelopedunderNuvia'slicenseswasbeingcontestedinthelawsuit.RegisternowforFREEunlimitedaccesstoReuters.comRegisterReportingByJaneLanheeLeeandStephenEllis;EditingbyNickZieminskiandDavidGregorioOurStandards:TheThomsonReutersTrustPrinciples.IndustryInsightLegalBoies,Hausfeldamonglawfirmsreaping$667mlnwindfallinBlueCrossantitrustcaseSaraMerken,DavidThomasAugust15,2022IndustryInsightsInsightsinAction:Differingperceptionsofstand-outlawyers’skillsetsGreggWirthJune29,2022IndustryInsightsClientFeedback:Trendsinclientfeedbackfor2022andbeyondEveStarksJune28,2022IndustryInsightsHowemployerscanleveragesignalsofhopetoretainLGBTQ+professionalsNatalieRunyonJune28,2022