Qualcomm vs. Arm: What are the best and worst-case scenarios?

Softbank is reportedly planning Arm IPO while locked in a high-stakes legal battle with Qualcomm. Although the case is becoming a game of chicken, because of its enormous impact on many stakeholders, including the litigants, the huge Arm ecosystem and especially the two major markets — personal and cloud computing — it is worthwhile to understand the best and worst case scenarios.