Qualcomm Inc. prevailed at trial against Arm Holdings Plc’s claim that it breached a license for chip technology that the world’s largest maker of mobile-phone processors acquired when it bought a startup in 2021.

Qualcomm's central processors are properly licensed under an agreement with Arm Holdings, a jury found in a trial in U.S. federal court that removed some, but not all, uncertainty around the mobile chipmaker's expansion into the laptop market.

What Happened: A federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm, clearing a hurdle for the San Diego, California headquartered chipmaker.

In 2022, Arm ignited a legal battle after Qualcomm continued to pay its existing royalty fees to Arm, which were allegedly much lower than what Nuvia was paying. After the two failed to come to an agreement, Arm argued the designs licensed to Nuvia were no longer valid, and that Qualcomm should destroy the technology created with them.

Qualcomm Inc.’s chief executive officer told a jury that its business suffered when customers were misled by computer-chip designer Arm Holdings Plc about the companies’ licensing agreement for chip technology vital to the electronics ecosystem.

By Tom Hals and Max A. Cherney WILMINGTON, Delaware (Reuters) - The chief executive of Arm on Monday downplayed the company's ambitions to become a chip supplier in its own right at a trial against Qualcomm,

Arm's legal dispute with Qualcomm is being argued before a federal jury in Delaware this week, pitting two of the world's most influential chipmakers against each other in an intellectual property case that threatens to roil the technology industry.