KEY TAKEAWAYS Qualcomm shares are falling in premarket trading Wednesday following a report that Arm Holdings is canceling a license that allows the British chip designer’s intellectual property in the U.

Arm Holdings has given Qualcomm a 60-day notice of cancellation of the license agreement which allows the company to use Arm’s intellectual property, according to a report.

Legal battle over licensing could impact Qualcomm's future chip designs and market position. Arm Holdings Ltd. said it will cancel a chip architectural license agreement with Qualcomm Inc. over a dispute over mobile technology between the two companies,