SoftBank's Arm suing Qualcomm for contract breach, trademark infringement
Justin Sullivan

SoftBank's (OTCPK:SFTBY) semiconductor design company Arm said on Wednesday that it has sued Qualcomm (NASDAQ:QCOM) for breaching its contract and infringing upon trademarks.
The lawsuit from chip design company, of which Qualcomm (QCOM) is one of its most notable customers, stems from Qualcomm's (QCOM) Nuvia acquisition in 2021. According to the suit, Nuvia used Arm licenses for its chip designs and those designs can not be transferred without permission.
According to Bloomberg, Arm said negotiations failed to reach a resolution and Nuvia's licenses were terminated in February.
Earlier this month, Qualcomm (QCOM) was reported to use its Nuvia acquisition, for which it paid $1.4B for, to re-enter the server market, with Amazon (AMZN) as a potential customer.
A Qualcomm (QCOM) spokesman said the lawsuit "marks an unfortunate departure from its longstanding, successful relationship with Qualcomm."
"Arm has no right, contractual or otherwise, to attempt to interfere with Qualcommâs or NUVIA's innovations," the spokesman added. "Armâs complaint ignores the fact that Qualcomm has broad, well-established license rights covering its custom-designed CPUâs, and we are confident those rights will be affirmed.â 
San Diego-based Qualcomm (QCOM) shares fell more than 1% to $132.17 in mid-day trading on Wednesday.
This week, it was reported that the European Union's antitrust regulators decided they will not appeal a court's decision to remove a $991M fine against Qualcomm (QCOM) over its decision to supply Apple with chips.