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.

(Reuters) -Chip firm Arm is cancelling an architectural license agreement that allows Qualcomm to use its intellectual property to design chips, a person familiar with the matter said, amid an ongoing legal battle between the two companies.

Arm sends Qualcomm a 60-day notice of cancellation for an architectural license agreement that—if executed—could throw the chip and smartphone industries into disarray.