Millet company seeks overseas expansion, patent reserves to seek cooperation

Millet is seeking to expand overseas, although its global vice-president, Hugo Barra, has avoided some markets by not acknowledging the potential patent litigation risks, but millet is conspiring to co-operate on patent reserves.

Tencent technology from people familiar with the situation, in order to circumvent the overseas expansion in the face of patent lawsuits, Millet is plotting with domestic mobile phone chip business with the core technology cooperation, the two sides will jointly fund the establishment of a new company, specialized in cell phone chip core technology research and development and application.

It is understood that millet in the communications core patent reserves almost zero, there are some of the design of secondary patents, and once overseas expansion, the company does not have enough intellectual property rights and other smart machine manufacturers to reach a patent cross licensing agreement.

Want to set up a joint venture

According to people familiar with the matter, millet and the core in a few months ago began contact, Millet company founder and CEO Lei and Li Vanchang and other senior executives met the core technology president Changuoliang, and reached a certain cooperation intention. Since then, Lei and Datang Telecom (Core technology parent company) group chairman really Caiki exchange of views on cooperation, and finally reached agreement.

At present, the two sides have entered the final negotiation period, will eventually determine the amount of investment, shareholding ratio and staff arrangements. Close to the negotiations insiders to Tencent technology revealed that the millet company will hold 51%, Core technology Holdings 49%. However, Tencent technology to the core technology related to the owner of the verification did not get a clear answer.

As an important part of China's mobile phone chip market, the core technology is headquartered in Shanghai, Datang Telecom Technology industry group in the Integrated circuit design section of the core enterprises, specializing in 2G/3G/4G Mobile Internet terminal Core technology research and application, providing 3G/4G mobile terminal chip and solutions. It and Datang microelectronics and other companies constitute the unified operation of Datang Semiconductor platform, the platform to chip design as the core, around the intelligent terminal chip, security chips, automotive electronic chips and other fields to launch business.

This is not millet company and the first contact with the core technology, as early as the second half of 2013 Millet launched the red-meter mobile phone, it has been used in the core technology provided by the chip, but because of the cycle and other factors finally did not go public.

"In addition to this strategic level of cooperation, based on the core technology LC1860 Red M LTE 4G mobile phone will soon be available, but the initial period is still three modules, five modules need to be commercially available next year." said the person.