This week I want to provide an update on the ARM vs Qualcomm case. Following this case can help us learn more about licensing agreements, and the legal norms of the semiconductor industry.
So far in the case;
ARM is scheduling meetings to question Qualcomm's witnesses. (Filed Nov. 22, 2023).
The judge wants ARM and Qualcomm to get a mediator so they can try to settle the dispute prior to trial. (Filed Nov. 16, 2023)
Apple is trying to stay out of the dispute because Qualcomm is pushing for ARM to reveal details of their licensing agreement with Apple. The judge granted Apple's request to hide information that is critical to their business, but Qualcomm might challenge that decision. The link below shows Apple's letter to the court.
Qualcomm's request to review ARM's agreement with Apple is interesting because it's not only Apple's agreement they want to see, Qualcomm wants to see ALL of the agreements ARM has with their customers. They also want to see documents pertaining to ARM's IPO, and communications between ARM and the very popular Chairman of their board, Masayoshi Son.
Below is the court document with Qualcomm's reasoning behind their requests.
I might be 100% wrong, but it seems Qualcomm is asking for documents that are irrelevant to the case so they can put pressure on ARM to settle, and in the process, gather information on ARM's customers, who are also Qualcomm's competitors.
This lawsuit highlights Qualcomm's aggressiveness. Under normal circumstances, companies try to maintain peace with their business partners, but not Qualcomm. They're trying to win at all costs. They're fighting with ARM. They're fighting with Apple. They're creating an uncomfortable situation for the companies that do business with ARM. Business is brutal on all levels, and it gets even worse in court.
Once this lawsuit is over, it will be interesting to see how Qualcomm coexist with the other major companies in the semiconductor industry. The industry is very connected, and companies cannot operate independent of each other. By attacking so many people, I wonder if there will be any long-term blow back to the company. Only time will tell.
Stay strong, stay blessed, and God willing, I will see you next week.
What your eyes have seen do not hastily bring into court, for what will you do in the end, when your neighbor puts you to shame? Argue your case with your neighbor himself, and do not reveal another's secret, lest he who hears you bring shame upon you, and your ill repute have no end.
Proverbs 25:8-10 ESV
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