Last week, I reviewed the complaint ARM filed in court against Qualcomm because ARM believes Qualcomm is using their Intellectual Property (IP) without their consent. This week I will review Qualcomm's response.
This case was filed in 2022 and is still ongoing. I am reviewing the original complaint and response in order to understand the basics of the case. Through this review, we can gain insights into the business model of companies in the semiconductor industry.
I am keeping a few things in mind as I read Qualcomm's response.
1) Qualcomm is not foolish. They are shrewd business people who have experience in the semiconductor industry. Something seems odd with how they went about their purchase of Nuvia. Most times, people who are buying a company because of its technology will make the deal contingent on getting clearance to use the technology. From the beginning, Qualcomm knew ARM had a problem with them using Nuvia's technology, but Qualcomm still went ahead and closed the deal with Nuvia.
2) ARM is in the business of licensing their IP. They also need to make current and potential customers feel comfortable about using their IP. Bringing frivolous or predatory lawsuits against their customers would hurt their business, so for them to sue Qualcomm means they believe Qualcomm's behavior is a real threat.
Below is Qualcomm's complaint, and my comments on the case. Some portions of the complaint were redacted by Qualcomm for confidentiality reasons.
God willing, next week I will discuss the current status of the case.
Stay strong, stay blessed, and God willing, I will see you next week.
“When you are on the way to court with your adversary, settle your differences quickly. Otherwise, your accuser may hand you over to the judge, who will hand you over to an officer, and you will be thrown into prison. And if that happens, you surely won’t be free again until you have paid the last penny."
Matthew 5:25 - 26 NLT
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