Question ARM lawsuit against QCOM/Nuvia !

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poke01

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Mar 8, 2022
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But thankfully there is a country that doesn't care much about such fabrications as IP and will move the humanity forward despite the lawyers
That country also does not care about democarcy, human rights, treats non-majority badly, privacy is a joke and that country gov has the final say and its courts favour the state. No please If something comes from that place it is likely going to come with backdoors worse than what we have now and if it does grow and it will only make that country's state gov have more control in the tech space.

I would much rather deal with "IP theft" being taken too far than ever deal with that countries tech and IP.
 

gdansk

Platinum Member
Feb 8, 2011
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That country also does not care about democarcy, human rights, treats non-majority badly, privacy is a joke and that country gov has the final say and its courts favour the state. No please If something comes from that place it is likely going to come with backdoors worse than what we have now and if it does grow and it will only make that country's state gov have more control in the tech space.

I would much rather deal with "IP theft" being taken too far than ever deal with that countries tech and IP.
Are you talking about USA or PRC? I cannot tell. But I digress as it all seems off topic politics

I rather not have the concept of perpetual intellectual property and as it is itself a recent legal innovation it is not wed to our state.
 

poke01

Golden Member
Mar 8, 2022
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idea's aren't IP and you don't think that the guy who was chief of the A7 toA12 cores had lots of idea's about how to make a fast CPU? How well have Apple progressed in CPU performance since his departure ?
of course ideas are not IP but they likely stole Apple's documents and designs which are the property of Apple not the employee.
 
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poke01

Golden Member
Mar 8, 2022
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It's "IP theft" in name only. it is the same intellectuals evolving on their ideas. Yet because it has some elements in common with Apple it could be a basis for a patent lawsuit.

Nuvia was making a new design. I don't get your how aboutism. The best they could do to safely productize their design is to be consumed by a near monopoly because of their vulnerability to our overreaching IP law.

Try designing a high performance CPU without stepping on patents. And there's nothing wrong with improving on your previous work.

I get what you mean but they chose to work at Apple and they agreed to the terms. Those enginners knew that all they work they did at Apple will belong to Apple.
For example: Raja cannot use whatever IP he designed for AMD at Intel now because that now belongs to AMD. It does not matter if he created the GPU design, its for AMD to use and AMD can allow others to use the designs if they allow. Raja cannot use the same designs as he used at AMD at Intel and change a fews things and call it a day.

Apple alleges. But we won't have resolution until that other court case resolves in 2023.

Apple has many secrets that people want to steal and at times Apple is right.
 
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gdansk

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Feb 8, 2011
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I get what you mean but they chose to work at Apple and they agreed to the terms. Those enginners knew that all they work they did at Apple will belong to Apple.
For example: Raja cannot use whatever IP he designed for AMD at Intel now because that now belongs to AMD. It does not matter if he created the GPU design, its for AMD to use and AMD can allow others to use the designs if they allow. Raja cannot use the same designs as he used at AMD at Intel and change a fews things and call it a day.



Apple has many secrets that people want to steal and at times Apple is right.
Apple's terms of employment are absurd. For example, Apple says that things you work on in your off time are also their intellectual property. Totally non-enforceable in most reasonable countries.

And he alleges Apple was suing him vindictively as well. Who knows which is right, I haven't seen any documents from the case.

But again I find it funny lawyers are getting in the way of engineers trying to create more product. Apple insists the ideas in his head are their property not his. Because they paid him to work on similar things for some number of years.

Meanwhile Apple hires an experienced engineer every day. Why do they prefer experienced engineers? lol. Because they know things. Which they learned at their previous employers. It's the same thing as reusing ideas he had at Apple.
 
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poke01

Golden Member
Mar 8, 2022
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Apple's terms of employment are absurd. For example, Apple says that things you work on in your off time are also their intellectual property. Totally non-enforceable in most reasonable countries.

And he alleges Apple was suing him vindictively as well. Who knows which is right, I haven't seen any documents from the case.

But again I find it funny lawyers are getting in the way of engineers trying to create more products because Apple insists the ideas in his head are their property not his.
yes agree but getting back on topic Qualcomm should not have allowed this go this far and did whatever ARM told them to do. I say this because Nuvia designs are awesome. If they do ever come out it will have the best ST at very low power per core.

Intel and AMD would feel it in the laptop space.
 

gdansk

Platinum Member
Feb 8, 2011
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yes agree but getting back on topic Qualcomm should not have allowed this go this far and did whatever ARM told them to do. I say this because Nuvia designs are awesome. If they do ever come out it will have the best ST at very low power per core.

Intel and AMD would feel it in the laptop space.
Yes I find it hard to believe it was in Qualcomm's best interest to let it get to this point. But I don't consider it impossible arm was itself being difficult given Qualcomm's opposition to the Nvidia acquisition. It was announced about 4 months before the Nuvia acquisition.

And if the Nuvia design is as good as they claimed and it is cancelled because of this then we are in a sad world. Having better than FireStorm efficiency in servers and laptops would be better for everyone.
 
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Hitman928

Diamond Member
Apr 15, 2012
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Apple's terms of employment are absurd. For example, Apple says that things you work on in your off time are also their intellectual property.

This is common in most engineering companies that I've worked in or know about. The differentiator is if you used company tools/software while doing this work in your off time. If you have your own side work during off hours and don't use any company property/licenses, then whatever you create is yours. If you use pretty much any company resources to do it, though, then your design belongs to the company as their resources enabled its creation.
 
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Doug S

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Feb 8, 2020
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The Register has an article about this which says the dispute is over the nature of the architectural license each company had. Qualcomm had an architectural license limited to ARM designs for personal use (phones, PCs) while Nuvia had an architectural license limited to server CPUs. I don't think anyone has ever reported/claimed that ARM architectural licenses might have limited based on the type of device they are going into - maybe you pay less for such a limited license.

https://www.theregister.com/2022/08/31/arm_sues_qualcomm/

Regardless, if those are the terms of Nuvia's license, and the license makes it explicit that is non-transferable, then some lawyer(s) at Qualcomm really screwed the pooch during due diligence for not flagging that and getting things square with ARM before completing the acquisition.

The question I have is what about Centriq? If Qualcomm's architectural license does not cover server CPUs now, it must have then. Did they switch to a more restrictive license when they threw in the towel on servers before their Nuvia purchase? If they did so (presumably to save money) did ARM warn them they had to negotiate a new deal if they changed their minds?

A lot of unanswered questions, but this looks like one of those drawn out court cases so I wouldn't expect to see anything with a Nuvia core on the market anytime soon unless Qualcomm gets out a checkbook and writes a lot of 0s - and ARM may have been trying to get that and decide it is too late for a settlement now. If so, look for Qualcomm to countersue ARM for restraint of trade damages, so don't look for any quick resolution to the possible sale or IPO of ARM either...


UPDATE: Having looked over the filing, I don't see any reference to limitations in architectural licenses for personal devices or servers. Not sure where The Register is getting that information, and even if true if it isn't mentioned in the suit it would seem to be irrelevant to the lawsuit. Hopefully they will update their article and explain where that is coming from.
 
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DrMrLordX

Lifer
Apr 27, 2000
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ARM/SoftBank are still reeling from poor decisions made by SoftBank in other markets (WeWork) and the failed attempt to market ARM to NV. This entire matter may be a brazen attempt by ARM to squeeze money out of Qualcomm where they may ultimately be proven to be in the wrong. Sadly it will result in Nuvia IP making it to market late (or never). It's also very bad news for ARM in general since a successful countersuit for damages could drain ARM of an enormous amount of wealth.
 

uzzi38

Platinum Member
Oct 16, 2019
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More like a braindead move. Arm as the licensor clearly has the upper hand here and sets the rules, and Qualcomm actively endangers its ARM license, something pretty much all of its business rely on. What is the gain for Qualcomm in that?

The gain is getting to cheap out on licensing fees by acting under Nuvia's license. Both Nuvia and Qualcomm have an ALA, but ARM are (and were for a year before they revoked Nuvia's ALA) stating that Nuvia's core designs would have to be relicensed under a new ALA with Qualcomm that accounted for the fact that Qualcomm is a much larger company with more products, thus the ARM IP included would be more widespread.

That's the justification ARM will use for a relicensing, and frankly, it's justified if you ask me. Licensing deals like this are sized based off of the customer because it's in both party's interest for the customer to do well. Knee-capping them wouldn't exactly be smart. It doesn't make sense for an established giant like Qualcomm to be paying a licensing deal designed for a small startup for such a major product. ARM will want Qualcomm to pay more in line with their size.

Lets be real here: this case will probably end up in a settlement. ARM don't really have a lot to gain by killing Nuvia cores entirely. Qualcomm are still an active customer for their in-house cores and will be even after the Nuvia cores get integrated - at least for a while - souring that relationship would not go well. Qualcomm are likely aware of this - they likely don't think ARM will take the case the whole way, so if they think they can piece together a cohesive defense that lets them contest ARM's then they win overall. If they don't, they'll almost certainly be able to settle the case regardless. It's not like ARM is going to burn down the entire bridge here - especially not after the failed NvidiArm. Losing a massive customer like Qualcomm would be a mighty blow.
 

moinmoin

Diamond Member
Jun 1, 2017
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The gain is getting to cheap out on licensing fees by acting under Nuvia's license. Both Nuvia and Qualcomm have an ALA, but ARM are (and were for a year before they revoked Nuvia's ALA) stating that Nuvia's core designs would have to be relicensed under a new ALA with Qualcomm that accounted for the fact that Qualcomm is a much larger company with more products, thus the ARM IP included would be more widespread.

That's the justification ARM will use for a relicensing, and frankly, it's justified if you ask me. Licensing deals like this are sized based off of the customer because it's in both party's interest for the customer to do well. Knee-capping them wouldn't exactly be smart. It doesn't make sense for an established giant like Qualcomm to be paying a licensing deal designed for a small startup for such a major product. ARM will want Qualcomm to pay more in line with their size.

Lets be real here: this case will probably end up in a settlement. ARM don't really have a lot to gain by killing Nuvia cores entirely. Qualcomm are still an active customer for their in-house cores and will be even after the Nuvia cores get integrated - at least for a while - souring that relationship would not go well. Qualcomm are likely aware of this - they likely don't think ARM will take the case the whole way, so if they think they can piece together a cohesive defense that lets them contest ARM's then they win overall. If they don't, they'll almost certainly be able to settle the case regardless. It's not like ARM is going to burn down the entire bridge here - especially not after the failed NvidiArm. Losing a massive customer like Qualcomm would be a mighty blow.
Indeed. Qualcomm looked how far it can get pushing its weight around. Personally I highly doubt in settlement Arm will be willing to offer licensing conditions equal or better than what was offered before this escalated to a lawsuit. It's in Arm's and really all ARM licensees' interest that not any heavyweight can dictate its own licensing conditions.

And I'm sure there is more to lose for Qualcomm in ARM (the ISA) than Arm (the company) in Qualcomm.
 

SarahKerrigan

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Oct 12, 2014
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I don't think this is a good move by Arm, or one in the best interests of the ecosystem. If IP can't transfer from an acquired company to the acquiring company, even if both have an architectural license, that greatly reduces the value of ARM-compatible semiconductor vendors with custom cores on the M&A market. Additionally, Nuvia being successful benefits the overall ecosystem.

I suspect this will end up being settled, but if not, it seems self-defeating.
 
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moinmoin

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Jun 1, 2017
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I don't think this is a good move by Arm, or one in the best interests of the ecosystem. If IP can't transfer from an acquired company to the acquiring company, even if both have an architectural license, that greatly reduces the value of ARM-compatible semiconductor vendors with custom cores on the M&A market. Additionally, Nuvia being successful benefits the overall ecosystem.

I suspect this will end up being settled, but if not, it seems self-defeating.
From outside it certainly can seem like a self-destructive move by Arm, especially at a time RISC-V continues to gain mindshare. But I'm sure Arm didn't take that step lightly and Qualcomm's behavior preceding the lawsuit was endangering the current state from inside. If you allow one of the biggest licensees to freely interpret the license conditions on its own and disrespecting the licensor's policies as they come in you can bet other licensees to try to follow suit.
 

Doug S

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Feb 8, 2020
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I don't think this is a good move by Arm, or one in the best interests of the ecosystem. If IP can't transfer from an acquired company to the acquiring company, even if both have an architectural license, that greatly reduces the value of ARM-compatible semiconductor vendors with custom cores on the M&A market. Additionally, Nuvia being successful benefits the overall ecosystem.

I suspect this will end up being settled, but if not, it seems self-defeating.


Without knowing the terms of the ALAs for Qualcomm and Nuvia, I'm not so sure this reflects badly on the ecosystem. If ARM is simply enforcing contracts that Qualcomm thought they could knowingly violate because ARM would look the other way because Qualcomm is one of their biggest licensees, or they were "worried about the ecosystem", or they were busy trying to sell/IPO itself, this isn't going to influence the decision making of other ARM licensees or potential licensees. Indeed, to the extent that Qualcomm's competitors who are also ARM licensees (Mediatek, Samsung, etc.) may be indirectly helped by enforcement of Qualcomm's licensing terms it wouldn't be seen as a negative by the ARM community at large. If you are playing by the rules with your license, you want others held to the same standard.

I think everyone has implicitly assumed that all architectural licenses were the same - at least other than Apple's which is rumored to be unique given their status as a former owner/founder of ARM. Under that assumption it seems obvious that one architectural licensee buying another allows IP covered under one ALA to transfer to another, which is why this lawsuit seems to have come out of left field. No one was questioning whether Qualcomm would have any trouble utilizing Nuvia's IP.

If ALAs are each somewhat unique in terms - perhaps based on what type of devices chips containing the licensed designs will be used in, or payment / royalty schedules based on anticipated volumes, etc. then that obvious conclusion no longer holds. Even had we known that, I'm pretty sure everyone would still have assumed that Qualcomm squared things away with ARM prior to finalizing the Nuvia acquisition. When you spend $1.4 billion you do your homework first, right? (unless you are Elon Musk)

When a company that is considering a $1.4 billion acquisition performs due diligence, you'd have to assume reading the license agreement that affects the major reason you feel they are worth $1.4 billion would be part of that due diligence! Qualcomm would already have access to their own ALA and know what terms it contains. If their ALA includes terms like "non transferable" or was not a pro forma template signed without any clauses specific to Qualcomm's intended market/use of designs arising from their ALA you'd want to look at Nuvia's ALA, right? Maybe they did, but made a calculation ARM wouldn't enforce its terms.

We only know ARM's side from their filing so far, so it is too early to judge. But if their characterization is at all accurate, Qualcomm is in trouble. I disagree that holding licensees to the terms of the license they signed would be a bad thing for the ARM ecosystem. It is in the best interests of those licensees who are living within the terms of their licenses (whether architectural or more standard core licenses) for those terms to be enforced for everyone. It is also in their best interests for ARM to receive sufficient licensing revenue so they can continue to update the architecture and design new licensable cores.
 

DeathReborn

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Oct 11, 2005
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Qualcomms grand plan... stick the knife into Nvidia buying ARM, float the "multi company" ownership of ARM & use that to get out of this hole they have dug (merge Nuvia IP into QC). Guess ARM caught them before they could put part 2 of their plan into action.
 

Thala

Golden Member
Nov 12, 2014
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ARM/SoftBank are still reeling from poor decisions made by SoftBank in other markets (WeWork) and the failed attempt to market ARM to NV. This entire matter may be a brazen attempt by ARM to squeeze money out of Qualcomm where they may ultimately be proven to be in the wrong. Sadly it will result in Nuvia IP making it to market late (or never). It's also very bad news for ARM in general since a successful countersuit for damages could drain ARM of an enormous amount of wealth.

Finally a well reasoned statement! Nuvia guys went to Qualcomm to work on PC/Phones CPUs and Qualcomm has indeed such a license. I does not really matter on what potential products Nuvia worked before with their Server License. Indeed sounds to me as Softbank tries make some quick money.
 
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DrMrLordX

Lifer
Apr 27, 2000
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Finally a well reasoned statement! Nuvia guys went to Qualcomm to work on PC/Phones CPUs and Qualcomm has indeed such a license. I does not really matter on what potential products Nuvia worked before with their Server License. Indeed sounds to me as Softbank tries make some quick money.

I will point out that Qualcomm may be re-entering the server market, a move which I personally did not expect:


That being said, it's got to be one hell of a complicated (and potentially unenforceable) license that would prohibit Qualcomm from launching Nuvia IP.
 

Doug S

Platinum Member
Feb 8, 2020
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That being said, it's got to be one hell of a complicated (and potentially unenforceable) license that would prohibit Qualcomm from launching Nuvia IP.


Not really, it just has to include the term "non-transferable", and a requirement that if the license is canceled under the terms of the contract (i.e. by a transfer of ownership) then all IP created under the license must be destroyed.

I've seen contracts with both those requirements, so it wouldn't be unusual nor unenforceable.
 

moinmoin

Diamond Member
Jun 1, 2017
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^
This indeed. Many people may not aware that while Arm's licensing rules allow customizing the ARM IPs they forbid giving them to other licensees. So effectively Arm remains the only player offering ARM IPs. Otherwise Arm would compete with multiple licensees offering diverting custom versions. Qualcomm apparently thought outright buying Nuvia would include their custom IPs, but obviously Arm has no interest of M&As to become a way to circumvent the above restriction.
 

Doug S

Platinum Member
Feb 8, 2020
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Not really, it just has to include the term "non-transferable", and a requirement that if the license is canceled under the terms of the contract (i.e. by a transfer of ownership) then all IP created under the license must be destroyed.

I've seen contracts with both those requirements, so it wouldn't be unusual nor unenforceable.


One thing I would add to this, it is not uncommon for licenses to state that if you fail to comply with the terms of a license that the licensee can cancel all their other licenses with you. I wouldn't be shocked if that's the case with ARM's licenses, though I couldn't see them taking things that far unless Qualcomm went total war on them in the courts.
 
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Roland00Address

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Dec 17, 2008
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Also in the lawsuit they admit they refuse to let Qualcomm release it under their existing architectural license. In fact that's probably what provoked it. Qualcomm submitted the design to arm for validation (lol) under the terms of Qualcomm's architectural license

In the end arm now insists it renegotiates all ARM-derived IP at acquisition. Your acquired license is useless and you cannot transfer it to an existing license. You have to negotiate a new license for all acquired ARM-derived IP. If you are on bad terms with ARM, good luck -- the fees will not be reasonable. ARM is effectively poisoned now.

ARM has many types of licenses types, organised like a pyramid when ARM was posting slides almost a decade ago (such as a 2013 Anandtech article the ARM diaries that reproduce this slide that was not to be reproduced without permission.)

The top of the pyramid license is a custom ARM license where you can make your own silicon designs instead of prebuilt, and since they are not using things like Cortex cores you pay terms that are negotiated between you and ARM. This type of license is custom between each company that has such a deal, and there were more than 15+ partners at the time of 2013.

But the mid and lower areas of the pyramid since you are using generic ARM cores, those are more standardised contracts with standardised pricing, but also that pricing is for a fixed amount of years.

ARM is going to protect their business and a custom silicon yet still using an ARM ISA is going to be the landmind area of contracts. This may not be talked much about in articles, but it is also Banally Obvious for ARM needs a moat to protect core businesses and their ISA is valuable.

Someday RISC V maybe valuable, but not today for so much software does not work on it without a recompile, likewise things with hardware and firmware. It is the same rational of why everyone still uses Windows even if so much of the world does not (by design)

I want to repeat ARM may give different contract deals for small vs large companies, much like the reverse happens with physical goods such as bulk pricing where you get a discount, and stuff like healthcare pricing with hospital and prescription drugs. It may stink but that is how economies work in the real world, Contract A and Contract B may have different prices and also terms.
 
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DrMrLordX

Lifer
Apr 27, 2000
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Not really, it just has to include the term "non-transferable", and a requirement that if the license is canceled under the terms of the contract (i.e. by a transfer of ownership) then all IP created under the license must be destroyed.

That doesn't seem to be the case here, though, or ARM wouldn't have allowed Qualcomm to use Nuvia's IP under any circumstance. In this case, ARM is asking Qualcomm for cash.
 
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