Any company that makes Arm chips must license technology from Arm Holdings plc, the British company that develops the instruction set. Companies can license the instruction set and create their own CPU designs or license one of Arm's ready-made Cortex CPU core designs to incorporate into their own chips.

Qualcomm’s recent Snapdragon Summit was a major showcase for the company’s new Snapdragon 8 Elite system-on-a-chip, which includes Qualcomm’s Oryon CPU, but the good vibes are souring wit | Analyst say Arm may be looking to force a settlement before the two companies meet in court on Dec.

The chip design firm gave a mandated 60-day notice of their cancelation to Qualcomm, Bloomberg reports. Arm claims that when Qualcomm acquired AI chip company Nuvia - which uses the Arm architecture - for $1.4 billion in 2021, it was required to seek Arm's approval to transfer licenses from Nuvia over to Qualcomm.

Arm Holdings Plc is canceling a license that allowed longtime partner Qualcomm Inc. to use Arm intellectual property to design chips, escalating a legal dispute over vital smartphone technology.Arm, based in the UK,

Arm Holdings (ARM) is reportedly scrapping an architectural license deal that allows Qualcomm (QCOM) to use its intellectual property to design chips.

Arm has served Qualcomm with a 60-day cancelation notice for its chip design license. Qualcomm's Snapdragon 8 Elite uses custom Oryon CPU cores, thanks to its Nuvia acquisition. Arm canceled Qualcomm's license due to the latter's Nuvia acquisition without its consent and new licensing agreements.

Arm Holdings Plc is set to terminate its architectural license agreement with Qualcomm Inc, which has previously allowed Qualcomm to use Arm’s intellectual property to design its own chips, according to a report from Bloomberg News.

Qualcomm is too cheap and has a massive opportunity ahead to let a license dispute derail the business plans. Learn more about QCOM stock here.