JPMorgan argues the Delaware District Court judgement favoring Qualcomm (QCOM) in a lawsuit with Arm (ARM) “first and foremost puts to bed a lot of uncertainty in the mind of investors relative to financial implications of an unfavorable judgement and potentially any effect from cancellation of a license.” Despite the favorable outcome, the firm would not rule out further litigation from Arm and potentially a “more amicable approach” from Qualcomm to allow tweaking of the financial terms of ALA licenses in the medium-term, but the ruling on Friday “handed Qualcomm a significant leverage for any future litigation,” adds the analyst, who keeps an Overweight rating on Qualcomm shares.
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