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Qualcomm and Arm Face a Second Trial: What Is at Stake?

Qualcomm’s new trial against Arm concerns alleged contract failures and possible royalty relief—not a damages award already established. The two companies’ earlier Nuvia case is separate.
From TheFinanceBase Team3 min to read
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Qualcomm and Arm began a new trial in Delaware on October 5, 2026, but the headline-grabbing “billions” are not a damages award. Qualcomm is seeking, among other relief, to stop paying royalties for up to five years; Reuters reported that this royalty relief could be worth billions. Whether that contract remedy is available, whether Qualcomm proves its claims, and whether it receives any money remain unresolved.

What the new Qualcomm-Arm trial is about

This is a lawsuit Qualcomm filed against Arm in April 2024 in the U.S. District Court for the District of Delaware. Qualcomm alleges that Arm failed to provide contractually required chip-testing tools and other deliverables, improperly tried to terminate Qualcomm’s Architecture License Agreement (ALA), and publicized that termination effort in a way that harmed Qualcomm’s business discussions, including talks about a chip deal with Meta. Qualcomm also alleges that Arm failed to offer Technology License Agreement (TLA) terms at commercially reasonable prices and terms, and later added a claim concerning good-faith negotiations.

Arm denies Qualcomm’s claims and says it intends to defend the case. The current litigation concerns Arm’s alleged performance under agreements with Qualcomm; it is not a retrial of the earlier dispute over Nuvia.

Why “potentially billions” does not mean a damages award

Reuters reported that Qualcomm is seeking to stop paying royalties for as long as five years, a remedy that could be worth billions depending on its scope and application. That is a request for possible royalty relief, not a precise damages figure, an amount Arm has admitted owing, or a court-determined award. Judge Maryellen Noreika was weighing whether the contract term supporting that request could be enforced. If the theory is unavailable, Qualcomm could pursue a smaller damages amount.

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Qualcomm’s own filing adds an important qualification. In its Form 10-Q for the quarter ended June 28, 2026, Qualcomm said it had not recorded a loss accrual because a loss was reasonably possible but not probable, and that a possible loss amount or range could not then be reasonably estimated. This is Qualcomm’s accounting disclosure, not a judicial finding or a quantified estimate of Arm’s liability.

How this differs from Arm’s earlier Nuvia case

Issue Earlier Arm lawsuit Current Qualcomm lawsuit
Who sued whom Arm sued Qualcomm, Qualcomm Technologies, and Nuvia in 2022. Qualcomm sued Arm in April 2024.
Central dispute Alleged breaches tied to Nuvia’s license and technology after Qualcomm acquired Nuvia. Qualcomm’s allegations about Arm’s performance under Qualcomm’s agreements, the termination effort and publicity, licensing terms, and resulting business harm.
What the jury or court decided The December 2024 jury found Qualcomm had not breached the Nuvia ALA and that Qualcomm CPUs incorporating Nuvia designs were licensed under Qualcomm’s ALA. Jurors did not agree on whether Nuvia breached its agreement. The court entered final judgment for Qualcomm and Nuvia on September 30, 2025; Arm appealed on October 1, 2025. Reuters reported that the new trial began October 5, 2026. The reviewed reporting establishes no verdict in this case.
Monetary relief at issue The reviewed sources do not state a comparable monetary relief amount. Qualcomm seeks damages and other relief, including a potential five-year halt to royalties; no final amount is established.

The first case’s judgment does not decide the claims in the current case. The parties, alleged conduct, and agreements at issue differ, and Arm’s appeal of the earlier judgment remains a separate proceeding.

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What the October 2026 trial covers

Reuters described a five-day jury trial beginning Monday, October 5, 2026, alongside a related bench trial addressing whether Arm negotiated in good faith over the next version of its chip technology. Qualcomm’s agreement with Arm runs through 2033, according to Reuters. The reviewed reporting does not establish the result of either proceeding.

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What remains unresolved

  • Whether the judge permits Qualcomm to pursue the royalty-termination theory.
  • Whether Qualcomm proves breach of contract, causation, and the claimed business harm.
  • Whether Qualcomm is entitled to damages or other relief, and, if so, the amount.
  • How the related bench issue will be decided and what effect the litigation may have on the parties’ commercial relationship.

Reuters’ October 5, 2026 account supplies the current trial framing and describes the royalty theory as potentially worth billions: Reuters report. Qualcomm’s Form 10-Q for the quarter ended June 28, 2026 sets out its case history and loss-estimation disclosure: Qualcomm SEC filings. Arm’s case history and position appear in its 2026 Form 6-K and financial results.

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