Nazomi, which specialises in hardware Java accelerators, is seeking a permanent injunction precluding further infringement and unspecified damages, the company said in a statement.
Arm denounced the lawsuit as "frivolous" and said it would defend itself vigorously. Arm investigated Nazomi's patents and made its product so it would not infringe, the company said.
Microprocessor design company Arm, developed Jazelle as a third instruction set for processors based on its Arm core. The technology allows Java applications to run alongside other operating systems and applications on a single processor.
This offers higher performance, lower system cost and lower power usage compared with coprocessor and dual-processor based setups, according to Arm.
Arm has licensed Jazelle to several of its customers, but products using the technology are a couple of years away, said Peter Magowan, executive vice-president of business development at Arm.
"There are no products out there with Jazelle. Over the next couple of years we expect products to come out, but it is still very early," he said.
Arm sees wide applications for its processors with Jazelle technology, from mobile computing and home entertainment devices to automotive applications.