Tech Giant Qualcomm Restructures Business To Protect Patent Portfolio

By Joseph Mandour on July 16, 2012

Intellectual Property Litigation Los Angeles – Qualcomm owns thousands of patents and has dozens more in development to add to its significant patent portfolio. Additionally, as a leader in mobile technologies and chip manufacturing, Qualcomm has long captured a significant market share by ensuring that its products are embedded in the top computers, phones and other hand-held devices.

However, its mobile technologies have become more and more important in its company growth plan. Mobile technologies account for 90% of Qualcomm’s patent licensing revenues and a large chunk of the company’s revenue on the whole. Moreover, Qualcomm’s patents are becoming increasingly significant as the use of 3G and 4G networks proliferate. Consequently, the San Diego based communications specialist and chip manufacturer recently determined that its current business structure did not adequately support the desired direction of its development and sales. As such, Qualcomm announced that it has plans to restructure its business operations. That reorganization includes the addition of new units to handle its chip business, effectively separating that part of its business from its key mobile communications and other intellectual property.

This is not to say that Qualcomm’s chip development is not also an integral part of its business. Apple is one of Qualcomm’s biggest customers using Qualcomm’s baseband chips in its tremendously popular iPhones and iPads. Additionally, the Snapdragon chip for smart phones and tablets is being used in Google’s Android and future laptops supporting Microsoft’s Windows RT Operating Systems. Qualcomm is highly motivated to continue its growth in the chip manufacturing field, thus the separation of its critical portions of business are expected to yield positive results almost immediately. To that end, Qualcomm expects that it’s reshuffling of business operations will allow products and services to be delivered more quickly and efficiently.

The tech behemoth also anticipates that separation of its open-source contributions from its 3G/4G patents will allow for greater efforts to increase market shares in both areas. Qualcomm is one of the more prolific and aggressive patent licensing companies with a significant patent portfolio. However, the nature of its internal organization did not allow for as much development in open-source software as many other top companies in the industry. It is anticipated that the recent reorganization will allow for greater contributions to open-source communities, as well as concurrent patent development. Patents are not necessary for contribution, but the restructure will now allow Qualcomm to compete with IBM and other significant open-source contributors without weakening the company’s market share.

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Posted in: Patent Registration