“According to recent reports, UK tech company, Arm Holdings, has made the decision to withdraw a significant architectural license agreement which permitted Qualcomm to utilize their intellectual property for chip design. This move comes as the latest development in the ongoing legal dispute between these two tech giants.

Arm Holdings has officially handed Qualcomm a 60-day notice of agreement termination. This license agreement had previously given Qualcomm the capacity to develop its own chips, using standards governed by Arm.

Arm Holdings, primarily owned by Japan’s SoftBank Group, instigated legal proceedings against Qualcomm in 2022. These actions were taken after Qualcomm allegedly failed to negotiate a new licensing agreement following the acquisition of Nuvia.

It had been expressed by Arm earlier, that the current design proposed for Microsoft’s Copilot+ laptops is technologically derived from Nuvia’s chip. As a result, the license for these chips was also withdrawn.

In response to these allegations, a representative from Qualcomm stated, “Arm’s continual threats are baseless and designed to manipulate a longstanding partner, disrupt our industry-leading CPUs, and elevate royalty rates regardless of our comprehensive rights under our architecture license.”

As the trial date in December rapidly approaches, Qualcomm remains confident that its legal rights under the agreement with Arm will be upheld.

When asked to comment on this report, Arm declined to respond.

The legal confrontation between these two industry leaders is set to commence in the federal court of Delaware in December.

If Arm emerges victorious from this litigation, it could potentially compel Qualcomm and approximately 20 of its partners, including Microsoft, to discontinue shipments of the new laptops. This outcome could effectively reverse one of Qualcomm’s most significant strategic acquisitions in recent years.

In spite of the ongoing public conflict between the two firms, some investors and analysts are hopeful that a settlement will be reached before the trial commences.”

For those interested in investing or keeping up with tech industry developments, this unfolding situation between Arm Holdings and Qualcomm is certainly one to watch.