China-based web security company Kingsoft, smartphone manufacturer Xiaomi and investment holding company Zhigu have launched a RMB 200m ($32.4m) fund to develop new intellectual property, Techweb reported yesterday.
Kingsoft and Zhigu have each committed $1.6m to the fund while Xiaomi has contributed $4.8m. The remainder will be raised from other limited partners.
The fund has not disclosed what kind of intellectual property it will invest in, though it is reportedly in reaction to China’s antitrust investigation into US-based wireless technology producer Qualcomm. Qualcomm had been forcing its Chinaa-based corporate customers to lift their patent fees when working with each other, a situation brought to an end by the investigation.
With the ‘reverse patent licence’ practice deemed illegal, companies making use of hardware patents will face a choice of paying higher fees to the companies that own those patents or developing their own intellectual property, leading to the formation of the fund.