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See the best of Reuters photography. See more | Photo caption Raging firestorms Firefighters battle raging wildfires in Colorado and Utah. Slideshow Debby slams Florida Florida declares a state of emergency due to flooding. Slideshow Qualcomm restructures to help protect patents Tweet Share this Email Print Related News Intel to buy InterDigital patents for $375 million Mon, Jun 18 2012 Analysis: Even after hiring bankers, RIM running out of options Wed, May 30 2012 Analysis & Opinion Posner ruling makes smartphone patent war economically irrational No summary judgment for Microsoft or Motorola in Seattle case Related Topics Tech » Thu Jun 28, 2012 11:26am EDT (Reuters) - Cellphone chip supplier Qualcomm Inc is changing its internal structure to protect its technology licensing business by creating a new subsidiary that will work on open source wireless developments. The biggest developer of cellphone chips also derives a huge amount of its revenue from selling licenses for use of its vast portfolio of technology patents to companies such as cellphone makers whether or not they use Qualcomm chips. The restructuring comes at a time when the wireless industry is beset with litigation related to technology patents. Under the new structure, Qualcomm Inc, the parent company will include its technology licensing division and corporate functions as well as most of its patent portfolio. Qualcomm Technologies Inc (QTI), the new subsidiary it is forming, will include its research and development arm and its wireless chip business. Qualcomm said it needed to make the change to protect its patent licensing business because its new subsidiary QTI plans to increase its work with open source software. Open source projects typically involve the sharing of technology with the broader development community. While the parent company will keep most of Qualcomm's patents QTI will hold some patents that are specifically developed to provide open source software contributions. Under the new structure, QTI will have no rights to grant licenses held by the parent company, Qualcomm said. Qualcomm said the restructuring was not aimed at spinning out either its chip business or its licensing business and nor was it in response to any third party actions. The company said the restructuring, which will be completed during the first fiscal quarter of 2013, will not change the way it reports its financial results. Qualcomm shares were down 86 cents or more than 1.5 percent at $54.04 in morning trade on Nasdaq. (Reporting by Supantha Mukherjee in Bangalore and Sinead Carew in New York; Editing by Joyjeet Das and Sofina Mirza-Reid) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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