Analysis Qualcomm has hit back at Arm with explosive allegations that the British chip designer has threatened to phase out CPU design licenses for semiconductor companies and instead charge device makers royalties for using Arm-compliant processors.Arm's decades-long business model is primarily licensing chip blueprints – such as CPU cores and GPU engines – to companies including Qualcomm, who put these blocks of technologies into their own chip designs and have the components manufactured.Qualcomm is now essentially claiming that Arm has threatened to pretty much scrap that approach within the next three years, and rather than license technology to chip designers and make them pay for it, Arm will instead directly charge device makers for using Arm-based silicon.In response to Qualcomm's filing, Arm's veep of external communication Phil Hughes didn't directly address the allegations about licensing changes, but said the filing is "riddled with inaccuracies, and we will address many of these in our formal legal response that is due in the coming weeks."- Qualcomm: Arm lawsuit motivated by greed, 'payback' for opposing Nvidia takeover - Arm hires former Splunk CFO Jason Child ahead of IPO - Microsoft ships non-Surface PC: a cheap Arm box for devs - Xiaomi India names Qualcomm as destination for allegedly illegal payments According to Qualcomm, Arm has tried to strong-arm one or more OEMs – device makers – into paying these per-device royalties directly to Arm: Arm has threatened at least one OEM that, if the OEM does not do so, Arm will go on to license the OEM's large competitors instead — the implication being that the OEM would be excluded from the market and could not obtain any Arm-compliant chips from Qualcomm or any other supplier "Arm has done this despite already having approached the OEM's competitors with a direct licensing offer, while acting as if Arm would only approach the competing OEMs if the threatened OEM declined the license in the first instance," Qualcomm added."