Qualcomm has announced plans to modify its corporate structure. The new corporate structure will feature the parent company, Qualcomm Incorporated, which includes Qualcomm Technology Licensing Division (QTL) and corporate functions, as well as most of Qualcomm’s patent portfolio; and a new wholly owned subsidiary, Qualcomm Technologies, (QTI), which, along with its subsidiaries, will operate substantially all of Qualcomm’s research and development activities, as well as product and services businesses, including its semiconductor business, QCT.
The change in Qualcomm’s corporate structure generally formalizes the way the company has been operating, and will continue to operate, its primary businesses. However, the company expects that QTI and its subsidiaries’ product and services businesses will increase their work with open source software in the future and this restructuring will, among other things, help ensure that QTI and its subsidiaries’ activities do not result in the licensing of any of Qualcomm Incorporated’s patents, including its 3G and 4G patents.
Under the new structure, QTI and its subsidiaries will own patents specifically developed for purposes of providing open source software contributions by QTI and its subsidiaries, whereas substantially all of the remainder of the company’s patent portfolio will continue to be owned by Qualcomm Incorporated. QTI and its subsidiaries will have no rights to grant licenses or other rights to patents held by Qualcomm Incorporated. There will be no changes to the intellectual property that is currently owned by Qualcomm Innovation Center, which works closely with the open source community to accelerate the advancement of the wireless industry as a whole.
Qualcomm anticipates that the new corporate structure will become effective during the first fiscal quarter of 2013 and does not expect any change to the way in which it defines its operating segments for financial reporting purposes as a result of this restructuring.