The biggest supplier of cellphone chips Qualcomm Inc. plans to form a unit to separate its chip business from its licensing operations, part of efforts to protect its intellectual property that includes patents for 3G and 4G wireless communications technology.
Qualcomm also derives a huge amount of its revenue from selling licenses for use of its vast portfolio of technology patents to companies whether or not they use Qualcomm chips.
Main Highlights of the new structure:-
1. Qualcomm to form a new unit for its R&D and chip operations i.e. Qualcomm Technologies Inc (QTI).
2. Qualcomm Inc as the parent company, will include its technology licensing division and corporate functions as well as most of its patent portfolio.
3. QTI the new subsidiary will include its research and development arm and its wireless chip business.
4. Qualcomm Technologies Inc (QTI), the new subsidiary, will hold some patents that are specifically developed to provide open source software contributions.
5. QTI will have no rights to grant licenses held by the parent company, Qualcomm.