According to the Zhito Finance APP, Qualcomm (QCOM.US) and Arm Holdings (ARM.US), which were long-time partners, will confront each other in court this week over a licensing agreement involving Arm's intellectual property.

The trial started on Monday and is expected to last about a week, during which the judge will hear testimony from Arm's Chief Executive Officer Rene Haas and Qualcomm's Chief Executive Officer Cristiano Amon.

The legal dispute began in 2022, when Arm accused the USA chip company Qualcomm of breaching contract and trademark infringement, following Qualcomm's acquisition of Nuvia, a startup also licensed by Arm, for $1.4 billion.

The lawsuit claims that Qualcomm transferred Nuvia's licensing without Arm's consent after the acquisition and used Arm's intellectual property without permission. However, Qualcomm, one of Arm's largest clients, argues that the existing licensing agreements cover Nuvia's business.

Qualcomm's Chief Financial Officer Akash Palkhiwala stated in last month's Earnings Reports conference call, "From our perspective, we have very broad and comprehensive licensing rights covering our custom-designed CPUs. Therefore, we are very confident these rights will be upheld."

SoftBank-owned Arm hopes the court will order Qualcomm to destroy products that infringe its intellectual property. In October of this year, the UK chip design company also issued a 60-day notice to Qualcomm to cancel the chip design licensing agreement, which will expire next week.

In October, Wolfe Research stated that it believes Arm's cancellation notice is "to gain leverage in negotiations - but this may not be the final outcome."