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A federal jury in Delaware ruled that Arm breached its contract with Qualcomm and intentionally disrupted their business relationship with Meta. The trial concluded after five days of testimony regarding allegations that Arm withheld verification tools and refused to renew licenses for specific processor cores. While the jury found Arm liable on two counts, it awarded Qualcomm only $2 in nominal damages. This decision means both companies declared victory despite the lack of significant financial compensation from the verdict itself.

The core dispute centered on the Architecture License Agreement (ALA), which allows partners to develop custom chips compatible with Arm’s design. Qualcomm claimed Arm failed to provide necessary software patches and verification materials, known as the Arm Compliance Kit. Additionally, Qualcomm alleged Arm threatened to terminate licenses for its customers and leaked these threats to the media in October 2024. These actions were said to have harmed Qualcomm’s negotiations with Meta and other clients.

Although the jury sided with Qualcomm on specific breaches, Arm won on four of the six claims presented. The company argued it acted in good faith and that Qualcomm sought to avoid paying billions in royalties. Judge Maryellen Noreika must now decide if this breach allows Qualcomm to suspend royalty payments for five years. This upcoming ruling could result in hundreds of millions or billions of dollars in financial consequences, though neither side has yet confirmed the final outcome.