06:07 AM EDT, 10/24/2024 (MT Newswires) -- (Updates with Qualcomm's ( QCOM ) response in the fourth and fifth paragraphs.)

ARM Holdings ( ARM ) has canceled its architectural license agreement with Qualcomm ( QCOM ) as the companies remain in a legal dispute, Bloomberg News reported Wednesday, citing a document.

According to the report, Arm has sent Qualcomm ( QCOM ) the required 60-day notice to cancel the license deal that allows the latter to use Arm's intellectual property in designing its own chips.

Bloomberg said the license cancellation escalates an ongoing legal dispute between the companies, dating back to 2022 when Arm sued Qualcomm ( QCOM ) for trademark infringement and breach of contract.

In a statement to MT Newswires, a Qualcomm ( QCOM ) spokesperson described the move as "more of the same from Arm - more unfounded threats designed to strongarm a longtime partner, interfere with our performance-leading CPUs, and increase royalty rates regardless of the broad rights under our architecture license."

"With a trial fast approaching in December, Arm's desperate ploy appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless," the spokesperson said. "We are confident that Qualcomm's ( QCOM ) rights under its agreement with Arm will be affirmed. Arm's anticompetitive conduct will not be tolerated."

Arm Holdings ( ARM ) declined to comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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