Qualcomm Inc.’s chief executive officer told a jury that its business suffered when customers were misled by computer-chip designer Arm Holdings Plc about the companies’ licensing agreement for chip technology vital to the electronics ecosystem.

Major semiconductor design titans Qualcomm and Arm have begun their legal battle this week in the US court, with both sides presenting their arguments in a case that centers on licensing agreements. Arm alleges that Qualcomm must renegotiate licensing fees following its Nuvia acquisition and subsequent product launches without proper agreements.