Swindon-based fabless chip firm Air Semiconductor has sold a group of 15 GPS technology patents and patent applications to u-blox.
According to Switzerland-base u-blox, the patents expand its own portfolio of low-power GPS designs.
Air-Semiconductor, which received additional funding from Pond Venture Partners last July, is in the middle of the development of a low power chip which will support always-on GPS positioning.
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As a result of the difficult market conditions, Air took the decision last year to strengthen its IPR portfolio with patent filings and adapt its business strategy to commercialise its technology.
It started to seek strategic partnerships with companies who have existing commercial channels for accessing lower power GPS applications.
The deal with u-blox is the first agreement to result from these discussions and should see Air's technology being used in commercial products.
"With these patents, u-blox' GPS engines will hold an even stronger position in the market for battery-powered GPS applications," said Thomas Seiler, CEO of u-blox.
Since 2006, Air has been developing GPS technology which will allow battery-operated devices to operate location technology continuously.
U-blox is a fabless semiconductor firm with global presence in Europe, Asia and the Americas.